Gold price hits fresh record high in London
LONDON (AFP) — The price of gold hit a record high 989.54 dollars an ounce on Monday, extending gains as the dollar tumbled to another fresh low against the European single currency.
Dollar-denominated commodities like gold win crucial support from the weak US currency because this makes them cheaper for buyers using stronger currencies, and therefore encourages demand.
Gold also rose because the precious metal is widely regarded as a safe investment in times of financial uncertainty. The metal has soared amid heightened fears of a potential US recession, alongside jitters over record high oil prices and rising inflation, traders said.
"Prices found support from the dollar weakness, buoyant oil prices and inflationary concerns, and these factors as well as continued geopolitical tensions are likely to support prices in the near term to challenge the 1,000 dollars per ounce level," said Barclays Capital analysts.
The euro rocketed in mid-afternoon European trade on Monday to reach a record pinnacle at 1.5274 dollars. That beat the previous all-time high of 1.5239 that was set on Friday.
On the London Bullion Market, the price of gold had closed at 971.50 dollars on Friday.
