The price of gold could spike to above $1,000 per ounce after it reached a record high today as investors seek a safe haven from volatile global equity markets.

The price of gold hit a record high of $948.60 as it also emerged that China had now surpassed the US as the second largest consumer of the percious metal behind India.

The stability of the gold market has led to it becoming a refuge from equity markets, with analysts suggesting it could lead to the price per ounce rising further.

Daniel Hynes, a metals strategist at Merrill Lynch, said: “There is a real possibility of a spike above $1,000 an ounce, although I am not convinced at this stage about its longevity above that price.”

China’s total demand for gold rose 26 per cent to 326.1 tonnes in 2007, primarily driven by the jewellery market which exceeded 300 tonnes for the first since 1997, the World Gold Council and Shanghai Gold Exchange said.

Gold sales in China totalled 363.3 tonnes last year, up 23 per cent, with trading volumes at the Shanghai Gold Exchange growing 46.3 per cent to 1828.13 tonnes.

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