Gold record high short-lived as Bin Laden's death weighs

The price of gold soared yesterday to hit a new record before falling back following the death of the world's most wanted man, Osama Bin Laden.

The precious metal hit a peak of $1,575.95 before shedding some of its gains following confirmation of the Al Qaeda figurehead's death.

Gold had already rocketed after the Federal Reserve last week revealed it would leave interest rates on hold at 0%-0.25%. It then jumped $35 on Monday to set a new record before the price fell back on expectations Bin Laden's death may ease geo-political risks.

This morning it was trading at $1,550. Oil also dropped back initially on the news, before settling at $124.6 per barrel.

Markets, which had initially rallied on the news of Bin Laden's death, were muted at close of trading. The Dow Jones closed down barely changed at 12,807, off three points, while the S&P 500 fell 2.4 points to 1,361.

European markets closed higher, with the German Dax up 13.18 points at 7,527.64, on a day when many other markets - including the FTSE 100 - were closed.