Financial Times:

Gold became the first commodity to reach a new record on the first session of new year with bullion prices pushing past the previous high of $850 a troy ounce reached in January 1980.

Gold pushed to $859.30 a troy ounce on Wednesday, helped by renewed US dollar weakness after the influential ISM manufacturing survey indicated that activity contracted in December, fuelling fears that weakness in the housing market is spreading into the wider economy.

Gold prices surged 30 per cent in 2007 as the dollar sank against the euro and oil prices challenged the $100 a barrel level. This combination was a key factor behind strong inflows in gold exchange traded funds in 2007. Meanwhile jewellery demand remained strong in spite of high prices, particularly in India, China and the Middle East.

Meanwhile oil prices rose by more than $2 following violence in Nigeria, the world’s eighth largest crude exporter, on January 1.