Gold Price Climbs To New Record On Debt Uncertainty

The price of gold has hit a new record price of $1,610 an ounce as debt worries in the US and Europe have intensified. It climbed above $1,600 for the first time on Monday, capping a record-breaking rally of 11 days of gains. Gold is considered a safe investment and usually gains at times of global economic uncertainty. But Spanish and Italian bond yields eased and banking shares rose, reversing large falls seen on Monday. Government borrowing costs are continuing to rise, though. A Spanish bond auction was oversubscribed, but the government was forced to offer sharply higher returns to sell 4.45bn euros (3.9bn) of bonds.