Gilt-edged gold prices near $800

Spot gold this morning (October 29th) rose to a new 27-year high of $794.40 per ounce, smashing through predicted barriers and proving the investment allure of the precious metal at current times.

The dollar's descent seems once again to have brought investors flocking to buy gold – with the greenback's perceived value sinking lower as rumors build of a further Federal Rate cut.

Hitting new lows against the Euro and the Canadian dollar – itself at a 33-year high against its southern neighbor – markets are acting on the inkling that Fed rates will be cut by at least a quarter of a percentage point this week.

Darren Heathcote of Investec Australia in Sydney, told Reuters that prospects for gold soaring above the next psychological price barrier, $800, were high: "I suspect there will be some selling pressure just before, should we get that high.

"But certainly, the fundamental reasons are still holding good that oil prices are high and there's geopolitical concern and the dollar is weak," he explained.

Gold futures were already in touching distance of breaching the $800 barrier, comveyed by the indomitable two-month bull run of the metal a $798.30 peak.