The New Nation - Internet Edition

BBC News

Gold has touched a fresh record high of $1,007.10 an ounce as deepening financial market troubles increase its.

The latest increase in the price of the precious metal came after the news that US investment bank Bear Stearns has been forced to seek emergency funding.

The announcement has raised fears that other US banks may have to follow suit.

After touching $1,007.10, gold had fallen back slightly to $1,000.40 by late afternoon in Europe.

The weak value of the dollar is another factor behind high gold prices, as investors seek a better store of value.

Analysts say that the dollar could fall further over the next few weeks.