Gold Price Past US$1,150
November 18, 2009 By Leave a Comment
LONDON - The price of gold soared past US$1,150 per ounce here on Wednesday for the first time in history, buoyed by the weak US currency and central bank purchases of the precious metal, analysts said.
In afternoon trade on the London Bullion Market, gold jumped to a record high US$1,152.85 per ounce after forging a series of all-time peaks in recent weeks.
In the foreign exchange market, the euro climbed as high as US$1.4977 in late afternoon trade in the wake of disappointing data on housing starts and inflation in the United States.
A weak greenback makes dollar-priced assets such as gold cheaper for buyers using stronger currencies, and tends to stimulate demand for them.
'Gold is getting support from a number of sources currently,' said analyst David Morrison at spread-betting firm GFT.
'Like all risk assets, it is benefiting from the sliding dollar, but it is also a safe haven for investors who are concerned about the safety of other currencies,' he told AFP.
Mr Morrison added that central banks were also building their reserves of the precious metal.
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