LONDON, Jan. 15, 2008 (Thomson Financial delivered by Newstex) — Gold hit a fresh record high in afternoon trade after weak US economic data for retail sales and producer prices convinced financial markets that the Federal Reserve will cut interest rates by 50 basis points by its next meeting on Jan 30.At 3.56 pm, spot gold was trading at 909.34 usd per ounce against 905.70 usd in late New York trade last night, having earlier hit another fresh record high of 914.20 usd.

Gold going to $1000 ? View Video Here

Gold has risen by by almost 300 usd since the onset of the credit crunch in mid-August, as a combination of economic fears, softness in the dollar and rising inflation have seen investors pour into the precious metal. Investors have been using gold as a store of wealth and as an alternative form of currency reserves given the dollar’s recent slide. Read Full Story