Political unrest in the Middle East and the catastrophic earthquake in Japan encourage investors flocked to buy gold.
Gold prices hit record highs for the second consecutive day Wednesday as investors seek alternatives to the U.S. dollar weakened.
Various developments in the world provoked in recent months, such as political unrest in the Middle East and earthquakes and tsunamis in Japan, has prompted some investors to seek what they regard as a safe investment.
Gold prices rose to above 1,500 dollars for the first time after the company's credit rating Standard & Poor's on Monday lowered outlook for the U.S. economy from "stable" to "negative," because of fears that the country's leaders will not be able to reach an agreement to raise the ceiling debt America.
Some analysts said gold prices could rise further. Investors also have to buy another one precious metal that is much cheaper, which is silver. The price of silver has risen to more than 44 dollars per one ounce, which is the highest record in 30 years.
