 A number of factors have combined to create a new gold boom |
The price of gold has continued its relentless climb and looks set to pass the $500-an-ounce level this week. The metal's price hit an 18-year high of $498.75 (�290.66) in early trading on Monday.
Its rising value is being driven by strong demand for jewellery and moves by some countries to increase their gold reserves.
The threat of terrorism and the ensuing economic uncertainty has also added to gold's image as safe investment.
Analysts say that the gold price is likely to continue past the $500-an-ounce mark, even if some investors decide to take their profits at that price.
"A lot of investors are just buying because the price is going up, then trying to find reasons to explain it," said Yingxi Yu, a precious metals analyst at Barclays Capital. The gold price hit a record of $873 an ounce in January 1980, held above $500 for one day in December 1987, but hit lows of about $250 an ounce in 2001.
Platinum prices have also surged in recent months, driven by strong jewellery demand and the metal's important role in car exhausts.
It stands at a near 26-year peak of $997 an ounce.
One-Minute World News 
News services
E-mail this to a friend 
Printable version 
