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Gold Prices in British Pounds reach all-time high

Gold Prices in Pounds Sterling have risen to their highest ever level amid fears that next month's British general election could result in a hung parliament.

Fears over such an outcome, which would have negative political and economic ramifications for the UK, have exacerbated those surrounding the debt crisis in Greece and the state of the euro currency.

Speaking to the Telegraph, Nicholas Brooks, head of research at EFT Securities - a London-based specialist in exchange-traded commodities - highlighted the growing value of the precious metal in the eyes of investors.

"The strong performance of gold, despite the strength of the US dollar, indicates that investors' are increasingly viewing it as an alternative store of value, not just to the US dollar, but to fiat currencies more broadly, as sovereign risks continues to rise," he said.

Mr Brooks added that euros, pounds and yen have become much weaker alternatives to the US dollar, leaving gold as an increasingly attractive option for central banks and sovereign wealth funds looking to reduce their debt risk.

This is something with which Afshin Nabavi, head of trading at precious metal service provider MKS Finance SA in Geneva, which has 220 employees worldwide, appears to be in agreement.

He told Reuters this week: "The market is overall a little bit disappointed with all the problems with Greece. A lot of people are turning to commodities as a safe haven."

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