11/09/2007: No stopping rise of gold price

Gold reached a one and a half year high on the New York Mercantile Exchange yesterday (September 11th), rising to a peak of £714.20 per ounce.

Although the peak of May 2006 reached $730, the rise above the $700 mark has this time been more consolidated, with this week's performance showing that investors were not getting cold feet.

As worries over the credit crunch deepen, a weak dollar and spiraling oil prices have contributed to safe-haven investment in gold, the price of spot gold now firmly establishing itself above the $700 level.

Meanwhile gold futures for December delivery traded between $711.50 and $723.80, also marking their highest peak since mid 2006 and closing at an impressive $721 per ounce.

Rising prices are predicted by some to stabilize into a regular $700-$710 trading range for spot gold, but some analysts and investors believe the price will continue to rise.

Paul Walker, chief executive of precious metals consultancy GFMS, told Mineweb/Moneyweb this week that a $750 gold price was perhaps in sight in the short term.