Europe debt crisis drives gold price to new high ‎

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Risk-averse investors have streamed into gold, sending prices for the precious metal to a record dollar high, on persistent fears that the Euro zone debt problems will spread.

Gold price firmed yesterday, hovering within sight of a record above $1,250 an ounce struck the previous day, as investors looked for safe havens from months of market turmoil.

Gold shares also advanced. In Sydney, Newcrest Mining Ltd., Australia’s largest gold producer, climbed 0.9 percent to A$33.50 after gold rose to a record yesterday. Rival St. Barbara Ltd. jumped 5.9 percent to 36 Australian cents. Avoca Resources Ltd., an Australian gold exploration company, increased 7.4 percent to A$2.33. Real Gold Mining Ltd. climbed 2.7 percent to HK$12.82 in Hong Kong.

Asian stocks fell on Wednesday and the Euro wobbled near four-year lows after Fitch Ratings said the UK faced a “formidable” fiscal challenge, fuelling concerns that Europe’s sovereign debt problems could stifle the global economic recovery. Adding to the uncertainty, US Federal Reserve officials also gave conflicting signals on the direction of interest rates, highlighting an increasingly important split within the central bank as the US economy shows signs of slowing.

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