Gold price hits record high above $1,217 an ounce

The price of gold struck a record high level above 1,217 dollars an ounce in trading on Wednesday as the US currency weakened against the euro. Dollars decreasing value forced investors to buy gold. Gold has smashed record after record over recent days and weeks on the back of inflationary fears and increasing moves by central banks to diversify assets away from the dollar, which has weakened against the European single currency. In Pakistan, gold price has crossed Rs 38,000 per tola. According to experts, a falling greenback makes dollar-denominated gold cheaper for buyers holding stronger currencies, pushing up demand for the metal and eventually its price. They predict the gold price may reach 1300 dollars per ounce. The yellow metal, whose two main drivers are jewellery and investment buyers, has also won favour in the uncertain economic climate which has been fuelled by Dubai's debt crisis. Gold is traditionally viewed as a safe-haven investment.