Gold Price Hits Record High

The price of gold has hit a new all-time high of $1,043.77 an ounce after a decline in the dollar boosted the attractiveness of metals to investors.

Forecasters have stated concern about the possibility of higher inflation in the US as its economy recovers was another factor in lowering the price of the dollar, further boosting the appeal of gold.
The last time the spot price of gold hit a new high was in March 2008, when it reached $1,032.80 an ounce.
Analysts said the price of gold could still rise further towards the end of the year if the dollar remains weak.
The price of gold is also typically strong in the October to December period because of the higher demand for jewellery in the run-up to Christmas and the Indian festival of Diwali.

A growing number of private investors have been buying the precious metal as a haven against both instability in the financial markets and fears over inflation.
Gold is a physical commodity so any investment means it is owned in its entirety by the purchaser which isn’t exposed to any bank's financial survival.

Now a lot of investors are buying gold because they are concerned about the impact of higher inflation; they are fearful about how much governments are borrowing, and how much money central banks such as the Bank of England are putting into the economy.
Other precious metals also saw their prices rise on Tuesday, with silver up 3% to $17.11 an ounce, and platinum adding 0.9% to $1,305 an ounce. The price of copper was up 2.4% to $6,060 a tonne.


AS