Oil and currencies 'spell more interest in gold'

Gold prices could be set to make another push towards $1,000 an ounce in the coming months due to contributing factors from the US economy.

Reuters reports that inflation worries are growing thanks to crude oil hitting $130 a barrel and the dollar showing further signs of weakness.

As a consequence, more investors are buying gold - especially in Asia - and prices are on the up.

Mark Pervan, commodities strategist at the Australia and New Zealand Bank, told the news provider that the dollar taking a turn for the worse should encourage investors to buy gold as an inflation hedge.

"The resilience in record high oil prices must be re-setting higher global inflation concerns, which should trigger a catch-up rally in gold compared to oil," he added.

Gold prices were also helped by recent figures from the US Bureau of Labour Statistics, which showed that the producer price index had jumped by 0.4 per cent, twice the rate that was expected.

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