February 16, 2010 / 10:07 AM / 10 years ago

Gold in euro terms hits record high 816.33 euro/oz

LONDON (Reuters) - Euro-priced gold extended earlier gains to hit a record high 816.35 euros an ounce on Tuesday, as investors spooked by fears over the fiscal health of peripheral euro zone economies bought the metal as a haven from risk.

Gold denominated in euros was bid at 815.82 euros an ounce at 0948 GMT, against 809.01 euros an ounce late on Monday. Its earlier peak beat a previous record high of 812.43 euros an ounce set in December.

Dollar-priced spot gold also rose to $1,113.20 an ounce versus $1,100.05. Gold typically has a close inverse relationship with the dollar, rising as the U.S. currency falls versus others.

However in recent sessions the correlation weakened, as both gold and the dollar benefited from fears over the outlook for smaller euro zone economies such as Greece. This helped gold prices outperform in other currencies.

“It is important to concentrate not only on the dollar price (of gold),” said VM Group analyst Matthew Turner. “Currently $1,100 is much lower than it has been, but if you look in euros that is not so true.”

Reporting by Jan Harvey; editing by James Jukwey

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