Gold hits 21-month high; US dollar also advances

The price of gold was fixed at $503 an ounce in London Monday, its highest level in 21 months, as the dollar also advanced on world currency markets. It was the first time gold has been fixed over the $500 mark since April 22, 1981. Silver, meanwhile, was priced over $14 an ounce for the first time in two years on heavy speculative buying from the Middle East, dealers said. They said the price of gold was rising on continued concern for the stability of the world financial system.