Gold prices hit new record high
Monday, 23 November 2009 19:43
The price of gold soared to a record $1,174 an ounce in London this afternoon. Traders said a sliding US dollar and worries about a possible rise in inflation increased demand for the 'safe-haven' metal.
The price of gold has hit new records in recent weeks, helped also by a surge in demand for the commodity from emerging market governments seeking to diversify their assets.
The price has soared 11.5% since India's central bank at the start of November bought 200 tonnes from the International Monetary Fund.
The dollar slid against the euro today on concerns that the Federal Reserve may keep emergency stimulus measures in place for a while longer.
Comments by a US Federal Reserve official that he would prefer to keep the central bank's asset-buying programme active beyond its current cut-off date pushed the dollar lower, analysts said.
Federal Reserve Bank of St. Louis President James Bullard said an extension of the programme, widely considered a negative factor for the US currency, would give more flexibility to US policymakers.
- Business Today: Paul Harris of Bank of Ireland Global Markets says investors are buying gold mainly as a protection against inflation
