LONDON, 29 January 2008 — The price of gold shot to a record $927.77 here yesterday as investors looked for safe havens from financial market turbulence and in response to stoppages at mines in South Africa. Platinum too hit a record, rising to $1,705 an ounce.
Power shortages in South Africa paralyzed mining activity for the fourth straight day. Major mining houses said that while the state utility Eskom did agree during weekend talks to provide a limited amount of power, it was not enough for normal production to resume.
In New York, oil rose yesterday on expectations OPEC will maintain output levels and the US Federal Reserve will cut interest rates again.
US crude bounced back from earlier losses to trade up 55 cents at $91.26 a barrel by 1855 GMT, well off lows of $88.78 struck in early activity. London Brent crude gained 73 cents to $91.63 a barrel.