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Gold hits fresh high
THE price of gold reached a record high of $US991.47 an ounce in London overnight after the dollar plunged to a record trough against the euro, dealers said.Gold is seen as a safe haven in times of economic uncertainty and is a hedge against inflation. There are now widespread fears that the US economy is lurching into recession and record oil prices of more than $US100 per barrel have raised inflationary pressures. Furthermore, demand for gold has picked up in line with falls in the value of the dollar against other currencies. The US unit struck a new low of $US1.53 against the euro today. US dollar-denominated commodities like gold and oil tend to gain from the weak US currency because a fall in the dollar makes them cheaper for buyers using other currencies Posted by: tipper 2008-03-05 |
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