Gold demand hits record high of $58 billion

(MoneyWatch) 

Financial instability in the euro zone and a downgrade of the U.S. government's credit rating touched off a record gold rush among investors in the third quarter, an industry group said Thursday.

Global demand for gold rose 6 percent to 1,054 metric tonnes for the three months ended Sept. 30, setting an all-time high of nearly $58 billion in value terms, the World Gold Council (WGC) said in a new report.

The jump in demand for gold was driven primarily by investors seeking shelter from global fiscal and macroeconomic uncertainty. Investment demand for gold rose 33 percent year-over-year to 468.1 tonnes, generating record quarterly demand of $25.6 billion, WGC said.    Full Read