Gold storming through $750 barrier

Gold futures in New York had a stellar morning today (October 15th), joining resurgent spot gold by jumping around $10 amid inflationary concerns and a spiralling oil price.

While some analysts urged caution and predicted a near-term correction, others hailed today's rise as a sign that gold was ready to break the $750 barrier and stay there.

Today's rises came after surges on Thursday and Friday of last week saw the gold investors send the precious metal above $750, only for rapid corrections to bring it back down.

This time, however, the increase has continued through the day, nearing the $760 mark and raising the possibility of the 28-year highs of 1980 being broken through.

Once again, those looking to buy gold reacted on news of crude oil, with a record figure above $85 dollars per barrel table this morning, sending bullion investors into particularly bullish mood.

Andy Montano, a director of Toronto bullion dealer ScotiaMocatta, told Reuters that geopolitical tensions were fuelling oil hikes, with huge effects on the gold price.

"Oil, which is really being driven primarily by political situations in Turkey and Iraq, has been the primary driver. The funds are in buying," he said.