Gold shot above $1,500 an ounce today for the first time ever as worries about the outlook for the U.S. economy boosted the metal as a safe haven, while rising inflation lifted Asian demand, Reuters reported.

Spot gold hit a high of $1,505.40 an ounce and was bid at $1,502.96 this morning, up from $1,493.90 late Tuesday. U.S. gold futures for June delivery rose by $8.20 an ounce to $1,503.30.

Silver tracked gold higher, extending a stellar performance that has seen the grey metal outperform other precious metals this year. Silver hit a 31-year high at $44.79 an ounce.

Gold prices are up 5 percent in April and look set to extend gains as the metal’s appeal as a haven from risk was boosted by talk that Greece might have to restructure its debt and Standard & Poor’s downgrade of America’s triple-A credit rating.

“Gold has been acting as a currency in its own right, and that is why we are up at $1,500,” said Simon Weeks, head of precious metals at the Bank of Nova Scotia. “There is an awful lot of bad news in the price. The S&P comment the other day has given us the final kicker to get up here.”

Though investors in the United States and Europe are seeing the metal chiefly as a safe store of value and a hedge against currency devaluation, stronger inflation and rising consumer incomes in China and India are also boosting demand there.

China is the world’s second-biggest gold consumer behind India, as well as being the biggest producer.