price of gold has risen above $1,300 an ounce for the first time.
price of the precious metal reached $1,300.07 during trading at the London
bullion market, before dipping back.
latest rise has been spurred by caution over the global economy, as well as
weakness in the US dollar – the currency used to value gold – which fell 1%
against the euro.
price has increased five-fold in the last 10 years, up from a low of $258 in
the factors spurring investors is gold’s traditional role as a so-called
“safe-haven” investment at times of economic uncertainty.
driver is more technical – gold is priced in dollars, and any fall in the
dollar makes it cheaper to buyers using other currencies.
World Gold Council’s last report on the gold market predicted that continuing
strong demand from jewellery buyers in the two fast-developing markets of India
and China would help to keep the price high.