Gold hits record high, oil prices slide

London: Gold hit a record high on Friday as global stock markets diverged, with profit taking on Wall Street while European and Asian markets gained o...

London: Gold hit a record high on Friday as global stock markets diverged, with profit-taking on Wall Street while European and Asian markets gained on reassuring data about the health of the world's biggest economy and likely US interest rate cuts.

Expectations of US interest rate cuts weakened the dollar, while oil prices tumbled as weak Chinese demand expectations offset turmoil in the Middle East, according to traders.

Gold rose to a record high of $2,500.16 an ounce as investors snapped up the haven investment in the face of an increasingly likely US interest rate cut in September and heightened geopolitical risks.

"The sharp drop in bond yields amid expectations of rate cuts by the Fed" have pushed gold prices higher, said City Index and FOREX.com analyst Fawad Razaqzada.

Wall Street's major indices dipped at the start of trading after rallying on Thursday following stronger-than-expected retail sales data that dispelled fears the US economy is heading for a recession.