Gold Hits Record of $1,308.90 After Price Drop Spurs Investors

Gold Price Hits Record of $1,308.90
Gold Price Hits Record of $1,308.90

Gold prices reached a record $1,308.90 an ounce Tuesday after earlier price declines and continued low interest rates spurred investors to buy bullion, Bloomberg News reported.

Gold prices, which earlier had their biggest intraday decrease in more than two months, reached a record high for the eighth time in two weeks, according to the wire service. Gold futures rose 0.6% to $1,306.10 an ounce earlier today and are up about 19% this year, Bloomberg reported.

Investors responded to the earlier price decline and interest rates that remain near record lows by buying more gold.

Earlier this month, consulting firm GFMS Ltd. put out an industry report saying that gold would likely surpass the $1,300-an-ounce mark, Reuters reported. While the U.S. has avoided the sort of sovereign debt crisis that has impacted other nations, that may change, potentially causing devaluation of the dollar, Reuters said, citing GFMS Chairman Philip Klapwijk.