The price of gold edged to its highest level in 18 months today as investors seek alternative homes for their cash amid US dollar weakness and predicted continuing low interest rates.
Gold touched $1,007 an ounce at one point today - a record high for the year and the best price since the historic levels reached in March last year.
The precious metal is traditionally seen a 'safe haven' investment for investors and tends to benefit when markets and economies hit troubled times and confidence erodes.
But it also moves as a counterweight to the US dollar - also considered a safer place for cash - and tends to become more attractive to investors looking to preserve their capital when the dollar takes a tumble.
Gold has enjoyed a significant rally in recent days, rising by $50 since September 1. It reached an all-time high of around $1,033 last March, as worries about the financial crisis brewing in the US hammered the country's currency.
The precious metal edged above the $1,000 mark earlier this year, but today's peak figure took the price higher, although it has since fallen back to $1,004 this afternoon.
Analysts said that weekend promises from 20 of the world's rich and developing nations to keep in place their stimulus measures - including spending and low interest rates - reinforced the appeal of gold.
