Gold 'close to highest price rise for 30 years'

Gold prices are within $10 today of their highest yearly increase since 1979, it has been reported.

An increase of 30 per cent through 2007 has seen the cost for those wanting to buy gold close in on the $850 level, last seen in January 1980, according to Reuters.

Pradeep Unni, an analyst for Vision Commodities, said: "Gold spiked to fresh highs on escalating geopolitical tensions, tightening oil supplies and a weakening dollar, which seem to stack the deck in favour of further upward movement.

"Fundamentals continue to remain positive and the dollar may extend the last week slide to this week too."

On October 1st, gold reached its highest price for 28 years and has increased even further since.

The most recent boost to the price of gold was the killing of Pakistan's political opposition leader Benazir Bhutto, Reuters said.