Gold zooms to 28-year high in London on inflation concerns
Wednesday, 17 October 2007
LONDON, Oct 16 (PTI): Gold prices yesterday surged to a 28-year-high on brisk buying by funds and retailers, triggered by firming dollar and rising crude prices that has forced investors to bet on precious metal as a safe haven.
Gold hit a record level of 755.85 dollar an ounce on continued US dollar weakness, growing inflation fears and geo-political tension in the Middle East, traders said.
They said real fears about inflation following a weak dollar and geo-political tensions between Iraq and Turkey were supporting gold prices.
The yellow metal surged to these current levels in January 1980 when the US inflation rate rose to 12 per cent, they added.
Crude oil prices reached a near record level of 83 dollar a barrel in response to concerns over supply shortfalls in addition to geo-political crisis, which was another reason for boosting demand for the precious metal.
The bull-run in gold was intact as demand from Indian market, where the festival and marriage season started last week-end, pushed up the demand notably higher, said traders.
Gold hit a record level of 755.85 dollar an ounce on continued US dollar weakness, growing inflation fears and geo-political tension in the Middle East, traders said.
They said real fears about inflation following a weak dollar and geo-political tensions between Iraq and Turkey were supporting gold prices.
The yellow metal surged to these current levels in January 1980 when the US inflation rate rose to 12 per cent, they added.
Crude oil prices reached a near record level of 83 dollar a barrel in response to concerns over supply shortfalls in addition to geo-political crisis, which was another reason for boosting demand for the precious metal.
The bull-run in gold was intact as demand from Indian market, where the festival and marriage season started last week-end, pushed up the demand notably higher, said traders.