Traders turn to gold to protect private wealth

Gold priced in euro has reached a record high today (May 6th) as investors look to safeguard their private wealth from the ongoing debt problems in Europe.

According to Bloomberg, the precious metal reached €921.2842 (£780.5801) during trading this morning, before retreating slightly.

Traders have turned to the commodity as concerns persist that Greece’s debt issues will extend to other countries in the eurozone.

The euro was down by approximately 11 per cent after a €110 billion finance package for Greece was announced by the European Union and the International Monetary Fund.

And David Tice of Federated Investors said in an interview with Bloomberg Television that gold - which is up 20 per cent when priced in euro so far in 2010 - will do ’very, very well’ as the anxiety persists.

He predicted traders will ’hold gold because it will protect [them]’.

Gold priced in dollars reached a record high in early December last year, but has since retreated slightly.

The news agency reports it was priced at $1,184 (£785.129) per ounce at 12:32 BST.ADNFCR-2318-ID-19761917-ADNFCR