Gold shoots to new high on euro worries

Gold prices have hit another record high on the back of Euro sovereign debt concerns and inflation worries.

This morning, the price of gold rose 1% to a high of $1,422.30 a troy ounce. The precious metal's price has now surged 7.5% since the Federal Reserve said last week it will inject $600bn into the economy in its latest stimulus measure, dubbed "QE2".

The Fed's action, which triggered widespread international criticism, has heightened inflation worries and increased interest in gold, seen as a safe haven during periods of economic uncertainty.

Gold has also rallied on the back of renewed Euro debt concerns as investors mull Ireland's current economic difficulties. The country, which is set to unveil its new budget soon, currently has a deficit standing at 32%.

In a further blow to the country, today it emerged members of Ireland's largest political party Fianna Fail are threatening to vote against the government if it cuts state pensions.

The price of gold has increased 29% this year.