The prices of gold and platinum rose to new record levels yesterday in a gloom-laden market that was gripped by the twin fears of soaring energy costs and an American recession. Gold bullion rose as high as $868 per troy ounce, rising $22 in the wake of Wednesday’s surge in the oil price to $100 per barrel. Platinum followed gold, rising to a record $1,550 per ounce as investors sought safe havens for their money.

Gold gained a third in value last year but buyers believe that it will strengthen further, profiting from the weakening dollar, against which the yellow metal is perceived to be a hedge.

The previous high point for gold was reached in 1980, when it peaked at $850 per ounce. That record, achieved in the wake of the Iranian revolution, also coincided with a peak for oil and the panic over runaway inflation.

The price of crude yesterday touched $100.05, breaching the $100 milestone for the first time and coming close to the real cost of oil in 1980, which is reckoned to be about $102 per barrel.

The World Gold Council said that yesterday’s price record was more sustainable than the 1980 record.

James Burton, chief executive, said: “It follows a sustained six-year price rise built on a combination of strong investment and jewellery demand.” The record prices for oil and precious metals come after a year of commodity excess in which dull metals, such as lead, zinc and nickel, achieved star status among investors.

Platinum, the more expensive white metal, is benefiting from demand from China, which consumes about 1 million of the 7 million ounces produced each year. Chinese investors are storing the metal to insulate themselves from weakness in the US dollar.

Platinum is a key component in industrial processes, notably catalytic converters for cars, which reduce noxious emissions. The Chinese are buying more cars, with 8.5 million vehicles expected to join their roads this year.

Platinum has also benefited from the fashion for the white metal in jewellery, having the edge over silver because it does not tarnish.

Production problems at key platinum mines in southern Africa have meant that supply has failed to keep pace with the burgeoning demand, causing the price to rise even higher.

Platinum’s price rose more than 36 per cent last year, and Credit Suisse predicts that the supply crunch problems could drive it to more than $2,000 an ounce this year.

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