Gold hits fresh high as Bernanke looks to QE3

Gold hit a further record high yesterday afternoon as Ben Bernanke said the Federal Reserve was prepared for QE3 while increasing risk of contagion in the eurozone worried investors.

Already one of the best performing asset classes over the past year, the price of gold jumped 1.2% to reach $1,587.46 per ounce, beating the previous record of $1,577.57 set on 1 May, the Guardian reports. Yesterday was the eighth consecutive day of rises and other precious metals followed suit with silver leaping 5% to $38.30 per ounce. Fed chairman Bernanke said yesterday he is ready to ease monetary policy further in the States should economic growth and inflation slow further. Meanwhile, Italian and Spanish 10-year bond yields rose to their highest levels since 1997 as Greek co...