Gold Price Races Past $Us1700 An Ounce

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August 7th, 2011

THE price of gold struck a record high above $1700 an ounce with dealers flocking to the safe haven metal as Asian stocks tumbled following Standard & Poor's downgrade of US debt.

The price of gold reached $1704.30 an ounce in Hong Kong trade.

``People are just taking their money out of other markets, especially from the dollar and euro and investing in gold and the Japanese yen,'' a Tokyo-based trader told Dow Jones Newswires.

Asian markets were sent spinning today after S&P late Friday cut the United States' AAA rating by one notch, citing deep divisions in Washington over its long-term fiscal standing.

The turmoil has led investors to seek out less-risky gold at a time of economic uncertainty.

S&P's downgrade compounded already weak sentiment amid fears that the eurozone debt crisis will spread to other nations, while the United States has posted a series of poor data indicating an economic slowdown.