The price of gold hit an all-time high today, rising above $US1450 an ounce on fears of global inflation and further sovereign debt problems in Europe.

Spot gold reached a record high of $US1455.06 an ounce before easing back slightly during today’s trading.

US gold futures for June delivery settled up 1.4% at $US1452.50.

Silver also went up, rising 1.8% to $US39.12 an ounce, after hitting a session high of $US39.25, the highest price for silver since the early 1980s.

The rises came after Portugal suffered a credit downgrade as markets swirled with rumours of an IMF bailout and restructuring of the financially troubled government’s debt.

Rising oil and corn prices also stoked inflation fears, prompting investors to pour money into precious metals, which are seen as a safe haven during inflationary times.

Concerns about inflation weren’t helped by comments by Federal Reserve chairman Ben Bernanke, who said he was committed to completing the $US600 billion quantitative easing programme in June.