Gold near record high on supply fears

Gold and platinum prices were near record highs today on the back of power shortages in South Africa that have crippled output…

Gold and platinum prices were near record highs today on the back of power shortages in South Africa that have crippled output at some of its mines.

Countrywide electricity shortages have forced South African mining companies to suspend operations, holding gold and platinum just a few dollars below record peaks hit on Friday as the power crisis has mushroomed.

South African mining companies said they hoped to resume production later this week.

Analysts said gold and platinum could challenge key milestones of $1,000 and $2,000 per ounce respectively if the crisis worsened, with added support from expectations for the Federal Reserve to cut US interest rates at this week's meeting.

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South African mining companies said they hoped to resume production later this week, but there was no official word on when a power crisis that has put jobs and economic growth at risk could ease.

Gold rallied to a record high of $923.40 an ounce on Friday while platinum hit a record $1,697 an ounce on Friday.