Gold prices are likely to rise again thanks to unrelenting inflation and shaky stock markets, it is claimed.
Alex Davies, senior analyst with Hargeaves Lansdown, pointed out that if the price of gold bullion is analysed in real terms, the record price would be the equivalent of over $2,000 per ounce.
He also predicted a strong future for the precious metal thanks to its status as a hedge against inflation and the falling dollar.
"[Gold has] not reached its peak, it's not even halfway there yet. When the stock market is so volatile, the case is still really strong for investments that are not going to be affected by these markets," he said.
Reuters reports that gold has already gained more than 23 per cent in 2008 on fears of inflation, expectations of further rate cuts and deepening US financial concern.
In anticipation of the rate cut announcement, gold prices raised another $3 yesterday (March 18th) to fetch $1,005.60 on the New York Mercantile Exchange, according to the Associated Press.
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