The price of gold hit a new nominal record high of $1,715 (£1,045) a troy ounce this morning, according to the World Gold Council.
Following the downgrade of the US’s credit rating, investors continued to pile into the traditional safe haven investment, which helped to push up the price by $59.20 when the markets opened this morning.
By mid-morning, the price came down slightly to $1,707.20 per 100 ounces. The previous record for gold was set on July 19 when the price reached $1,600.
Demand for gold has surged in the last week following concerns over both financial stability in the US and the eurozone.