Gold prices breached $700 for the first time in 25 and a half years in both London and New York today as investors ploughed cash into the precious metal amid rising concerns over the Iranian nuclear crisis.
On the Comex, a division of the New York Mercantile Exchange, gold for June delivery touched $701.50 an ounce - the highest level since October 1980.
On the London Bullion Market, the price of gold reached $700.80 an ounce for the first time since September 1980. Gold had struck the historic high point of $850 in January 1980.
Meanwhile, platinum also climbed to a record high $1,236.50 an ounce on the London Platinum and Palladium Market.
Investors have sought refuge in gold and platinum because both precious metals are seen as a safe store of value in times of geo-political uncertainty, notably the current Iranian nuclear energy crisis.
Gold prices have also been supported by a weaker US currency, which makes precious metals priced in the US unit on world markets more attractive to buyers using other currencies. Investors also regard gold as a safe store of value amid higher inflation caused by high oil price levels.
Gold prices could reach $850 an ounce within the next two years owing to keen investment demand, according to a report published last month by London-based metals consultancy GFMS.
Meanwhile, rampant demand from the booming economies of China and India have also underscored recent strong gains in the metals complex. Metals such as platinum have also been supported by weak global stockpiles and limited production.
