Gold hits new record price

The price of gold hit a new all-time record overnight owing to rebounding oil prices, a weak dollar and geopolitical tensions, traders said.

This morning spot gold was trading at $US878.40 an ounce and had passed the $US900 mark in long-term futures contracts in New York.

Gold is seen as a defence against inflation, which in many countries is driven by runaway crude prices.

The precious metal is also seen as a safe haven amid global unrest, which on Tuesday was being fuelled by tensions between Iran and the United States.