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Gold futures hit a record above US$1000 an ounce this morning, joining oil which also reached an all-time peak of US$111 a barrel.
"They (gold and oil) look very much like a safe-haven, because if you look at other asset classes there is a lot of risk associated with equities, carry trades and so on," said Michael Lewis, global head of commodities at Deutsche Bank.
Fears of a recession and expectations of aggressive rate cuts from the US Federal Reserve to help shield the US economy is piling pressure on the dollar, while also boosting alternative investments.
"Gold and agricultural commodities are the two we think should be bullet-proof to the problems in the US economy and declining equity markets," Lewis at Deutsche Bank said.
- REUTERS