Gold price surges to $660 an ounce

The price of gold skyrocketed to $660 an ounce at the afternoon fixing in London Monday, another record. The dollar was steady to slightly lower. The latest gold-buying spree began in New York Friday afternoon.

It was spurred by Kuwait's announcement that it would trim its oil production 25 percent April 1. The cutback was seen as a prelude to similar actions by other OPEC nations. One dealer in Zurich, where gold prices were lower than London's, but still high, attributed the buying spree to concern about the situation in Afghanistan and Pakistan.