As Gold Hits Record, Central Banks in Focus

"Gold's surge to a record sparked speculation that central banks may be stepping up purchases of the precious metal.
Tuesday, gold contracts for June delivery rose $4.70, or 0.4%, to $1,244 a troy ounce, a record settlement price on the Comex division of the New York Mercantile Exchange. Gold also hit an intraday record, surging to $1,252.10. In euro terms, the metal also hit a record of €1,042.94 ($1,242.87) in the London market, a gain of 2.5%.

The metal has surged over worries about Europe's debt woes and the slumping value of the euro. Investors in metals and currency markets have been on alert for any sign that the world's central banks, and China in particular, are shifting reserves out of the euro and into gold.

Though central banks typically are coy about investment decisions, there have been signs lately that they might be shifting out of euros and into gold."

at http://online.wsj.com/article/SB10001424052748703302604575294093148400182.html