Gold leapt to a huge new high today after the Japanese central bank cut interest rates to zero, while experts are predicting even higher prices to come.
Gold hit $1,328.05 an ounce today, having finished yesterday at $1,315.2.
The rush to buy gold was prompted by the unexpected move by the Bank of Japan to cut interest rates to zero and launch its own asset purchase scheme – similar to our quantitative easing – to boost the economy there.
This sent Yen-priced gold higher – hitting its highest price since June at 111,036 yen.
Gold has now climbed 19% in 2010, and grew 3.8% in September alone. The precious metal is in uncharted territory but experts are still predicting that prices have further to go.
Renowned commodities investor Jim Rogers said in an interview yesterday that, even at current all-time highs, gold is undervalued.
He told CNBC: 'Gold is going to go a lot higher over the next decade. It may slow down for a while because it's run up so dramatically here in the last few weeks. But gold's going to be much higher. Adjusted for inflation it should be well over $2,000 now.'
Delegates polled at the London Bullion Market Association (LBMA) annual conference said last week that they expect to the value to rise $1,450 next year. That would represent a 12.5% rise in value from already record levels.
The LBMA poll's bullish predictions deserve to be taken seriously, given it has made decent calls before. Last year the LBMA delegates forecast gold would be trading at $1,182.50 by October 2010.
