Gold has re-emerged as a safe-haven for investors following the outbreak of hostilities between Israel and Hamas.
Israel's bombardment of the Gaza Strip has now entered its third day, with the local university campus being the latest target.
Over 300 people have been killed and more than 1,400 injured as a result of the air strikes, which Israel says are a response to the rockets fired into Israel by Hamas over the last eight years.
The price of oil has increased over fears that the conflict could lead to strain being put on the supply of oil produced in the Middle East and Darren Heathcote, head of trading at Investec Bank in Sydney, believes that this, along with the weakness of the dollar, has helped to boost the price of gold.
The commodity is now being looked on more positively by investors, Mr Heathcote said.
"Gold is obviously gaining a lot of favor as a safe haven asset again," he told Bloomberg.
Patricia Mohr, vice-president and economics and commodity market specialist at Scotiabank, has predicted a "big rebound" in oil prices over the next 18 months - something which could impact on the price of gold.
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