Gold hits new high on weak dollar Posted:
Mon, Nov 9 2009. BBC News
The
price of gold has touched a new all-time high as the precious
metal becomes increasingly attractive compared with the weakening
dollar.
Gold
rose by almost $12 to hit $1,107.2 an ounce, compared with
$1,095.7 at the previous close.
Growing demand from emerging markets, particularly
in Asia, is also helping to drive the price of gold.
Gold and other commodity prices have surged
recently as investors have moved away from the US dollar.
The dollar has fallen by 13% against the pound
this year, and by 7% against the euro.
"The dollar will continue to have a very
big impact on metals and gold", said Afshin Nabavi at
gold bullion refiner MKS Finance.
Increased demand among emerging market governments
looking to diversify their foreign exchange holdings has also
pushed the price of gold higher.
There is also higher demand from individuals.
The price of gold is typically strong in the October-to-December
period because of the higher demand for jewellery in the run-up
to Christmas and the Indian festival of Diwali.