Gold prices in S. Korea continue to break record

Domestic gold prices set a fresh record high again on Saturday on increased demand for safer assets amid concerns over a slowdown in the U.S. economy and lingering debt problems in Europe, industry sources said.

The retail price of 1 don (3.75 grams) of pure gold in the country stood at an all-time high of 254,100 won ($234.3), up 36,000 won from a month ago, according to the Korea Gold Exchange, a local gold dealer. The don is a Korean unit used to measure gold.

The figure could translate into a one-don pure gold ring, a common present for a baby on its first birthday. The price per don of gold in South Korea surpassed the 200,000-won mark in June last year. In August 2008, the retail price of gold was some 110,000 won per don.

Runaway gold prices are also becoming a global trend as investors move to hold onto safer assets amid growing fears over a double-dip recession.

Gold for December delivery rose to a record $1,852.20 an ounce in New York on Friday. 

(Yonhap News)