Gold News

Gold prices rise again

Gold prices have risen as investors continue to hedge their bets against inflation, according to reports.

At a time when the price of crude oil is climbing and the dollar is weakening, investors are choosing to buy gold as an alternative asset.

Gold reached $845.84 an ounce on November 7th, the highest since 1980 and follows a 31 per cent rise in the previous 12 months.

Darren Heathcote, head of trading at Investec Bank, told Bloomberg that "expectations are that gold will continue its bull run in the new year because of fundamentals such as higher oil prices".

"Funds will probably allocate new positions and gold looks like one of those assets that might give them some return.''

A recent Bloomberg survey discovered that investors expect gold prices to rise to record levels this year.

Money Morning investment director Keith Fitz-Gerald recently predicted that gold will hit the $1,000 mark in 2008.


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