By Nicholas Larkin and Halia Pavliva
Gold rose to the highest price since March as a slump in global equity markets increased the appeal of precious metals as an alternative investment. Silver touched the highest since February.
Stocks in Asia, Europe and the U.S. dropped after records showed that Federal Reserve policy makers saw risks last month to a U.S. economic recovery, and some Fed officials said more asset purchases may be needed to secure a stronger economic recovery. Some investors buy gold as a store of value when stocks decline.
“The fact equity markets appear to have stalled and inflation fears are on the increase should give gold increased upward momentum,” James Moore, an analyst at TheBullionDesk.com in London, wrote in a note today.