The price of gold hit a record high yesterday, with analysts giving a number of reasons for its rise. Both the price of the actual metal and the price for buying it at a future date rose more than 2 per cent to $1,274.75 an ounce. It was the biggest one-day gain for the commodity in four months.
One of the factors spurring investors is gold’s traditional role as a so-called “safe-haven” investment at times of economic uncertainty. On the physical market, demand for both bullion and jewelry has risen ahead of the seasonal Indian wedding period and the Hindu religious festivals that begin in September. Another driver is more technical - gold is priced in dollars, and any fall in the dollar makes it cheaper to buyers using other currencies.
