Investors 'hurrying into gold'

Investors are hurriedly taking their assets out of stocks and placing them into gold bullion as tensions about the financial sector increase.

Some analysts believe the precious metal could reach record levels, possibly testing the $1,000 last seen in March 2008, based on threats to banks and support from crude oil prices.

"The rumours are out there in the market that there may be more regional banks in trouble," said Darren Heathcote of Investec Australia - part of one of the world's biggest international specialist banking groups - to Reuters.

"That's obviously a concern for the market and this has driven people into more hard asset-based investments like gold."

Earlier this week, it was reported that US mortgage giants Fannie and Feddie, may be in trouble, sparking fears of a Bear Stearns-style closure.

Meanwhile, oil has climbed to as much as $146 dollars a barrel due to geopolitical tensions, which has also acted to support gold prices.

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