Dollar and inflation fears drive Gold Price
Speculation that interest in Gold Investment could heighten has continued to support the yellow metal's surge, Bloomberg reports.
Tuesday (October 13th) saw the price of gold hit record highs in both London and New York as the number of people Investing in Gold was boosted on predictions of sustained demand for precious metals.
According to Peter Fertig, owner of Quantitative Commodity Research in Hainburg, Germany, currency and inflationary issues are behind gold's strong appeal.
"There's lots of concern about the weakness in the dollar, and this has been driving gold," he told the news provider.
"The fear that central bank exit strategies will come too late to prevent inflation is giving support to gold."
Gold futures hit $1,069.70 an ounce in New York and spot gold reached $1,068.63 in London.
Last week, Adrian Ash, head of research at UK gold brokerage BullionVault, said that the recession had significantly boosted demand for gold.
"The bottom line is that after Northern Rock and the wider crisis in the financial markets, more and more people really started to move into gold," he told the BBC.
"Gold is a physical investment, they own it outright, so they are not exposed to any bank's financial survival. Now a lot of investors are buying gold because they are concerned about the impact of higher inflation."