Gold hits record at $1,000 an ounce

By Javier Blas and Chris Flood in London

Published: March 13 2008 16:49 | Last updated: March 13 2008 16:49

Gold prices hit a record of $1,000 a troy ounce on Thursday as investors sought refuge from the weakening US dollar.

The trades above $1,000 an ounce in the London spot bullion market were confirmed by several banks, although the actual level was the subject of some controversy as it was not reflected on several of the trading systems used by banks in London and New York.

Gold traders at UBS in London said they traded at above $1,000 an ounce. Société Générale in London also confirmed the trades and other bankers said they saw spot prices above $1,000 an ounce.

A spokesman for the London Bullion Market Association, the industry body, confirmed trades above $1,000 an ounce on the EBS electronic platform. The afternoon fix was set at $995.00 an ounce, the LBMA said.

Spot bullion in London, the industry main benchmark, rose to an all-time high of $1,000.45 an ounce, up nearly $17 on the day, on the EBS screens. In New York, the less significant Comex gold future prices hit a record of $1,006.3 an ounce.

The surge came as the dollar fell to a record low against the euro and to a 12-year low against the yen. Precious metal analysts warned that further prices rise were likely if the weakness of the dollar continued.