Gold at new high on debt crisis fears

GOLD hit a record for a second straight day yesterday, powered by deepening fears over the spread of the eurozone debt crisis, while the most recent batch of US data did not dispel concern about the world’s biggest economy.

The United States avoided an unprecedented debt default on Tuesday with a last-minute deal on raising the country’s borrowing limit.

But credit ratings agencies are not convinced over resilience of US finances, especially as growth has been patchy enough to spark fresh market speculation about what policy measures the Federal Reserve might use to boost the economy.