THE price of gold reached an 18-year high last week, after speculative buying surged with the news that the Russian central bank is planning to double its gold reserves.
The value of precious metals in general has been rising quickly over the last three months, said Brighton precious metal dealer Michael Bloomstein. This is in part due to Far Eastern buying that has helped copper reach an all-time high and platinum briefly reach a 26-year high before falling back to slightly below that level.
With the increasing costs of energy and the rising rate of inflation in the US, a trend has also begun with central banks now purchasing gold as a hedge against global inflation. This has upped the world’s demand for gold, and led to higher levels of speculative buying as a result.
It was only a month ago in ATG No 1711, October 22, that gold hit £268.81 per 24-carat troy ounce, the highest price for 17 years.
With ongoing economic expansion in China and pressure on oil prices, the pressure on the market may well send gold prices even higher.
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