Gold closes higher, but off record high

HONG KONG, Aug 11, 2011 (AFP) - Gold prices closed at $1,782.50-$1,783.50 an ounce in Hong Kong on Thursday, down from its record high above $1,800 in the morning when dealers rushed into the safe haven asset.

The precious metal hit $1,814.50-$1,815.50 in early trade as Asian markets tumbled after Wednesday's massive sell-off in the United States and Europe, which was caused by fresh concerns over the global economy.

It closed at $1,761.50-$1,762.50 on Wednesday.

Rumours of a downgrade in eurozone giant France -- due to problems at a number of French banks -- reignited concerns that the European debt crisis has spread from the peripheral states.

However, Asian markets clawed back most of their morning losses, providing dealers with the chance to take profits on the yellow metal, which benefits in times of economic uncertainty.

Other news