Gold crosses $1,500 on global concerns

Gold hit a fresh record above $1,500 dollars in Hong Kong on Wednesday as traders sought out the safe haven amid concerns over the global economy.

The precious metal rose to $1,500.70 an ounce in afternoon trade days after Standard & Poor's downgraded its US sovereign debt outlook to "negative" from "stable".

The ratings agency's move Monday challenged Washington's gold-star "AAA"-rated standard as it warned that politicians seemed unable to agree a plan to reduce a huge budget deficit, which is running at around 10 per cent of gross domestic product.

The move sent global shares tumbling and it also comes as concerns grow over global inflation, with China and India struggling to control prices and the European Central Bank also being forced to hike rates to ease costs.

Gold is considered a safe haven bet against high inflation.

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