Gold reaches new high

Gold prices set a new all-time record today (January 3rd) after soaring to $867.90 an ounce on the London Bullion Market.

The surge came after oil prices surpassed the $100 a barrel mark amid continuing uncertainty surrounding the strength of the US dollar and the fallout from last week's assassination of Pakistan opposition leader Benazir Bhutto, the AFP reports.

Meanwhile, the World Gold Council (WGC) has issued a list of what it believes are the main short-term factors contributing to the recent spike in gold prices.

Shrinking mine output, strong jewellery demand, growing awareness of the advantage of having gold in a diversified portfolio and easier access to gold investments were all cited by the organisation.

"It is evident that gold's unique investment attributes as an effective safe haven and dollar hedge have resonated with investors during this time of financial uncertainty," commented WGC chief executive James Burton.