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Last Updated: Monday, 14 January 2008, 14:02 GMT
Gold price at fresh all-time high
Gold bars
The price of gold has now risen 50% over the past year
The price of gold has reached yet another all-time high, hitting $914 an ounce, as investors seek a haven from any potential US recession.

The weak dollar has also boosted the metal, as this makes it cheaper for holders of other currencies.

Gold's record position was mirrored by other precious metals, with platinum also setting a fresh all-time high.

"There is room for gold to go higher," said Darren Heathcote of Investec Australia in Sydney.

Most fund managers have a herd mentality and they are just attracted to gains
Robin Bhar, UBS Investment Bank

"We are in an uncharted territory, really."

Analysts added that gold prices were also being lifted by expectations of further cuts in US interest rates, high oil prices, and by speculative trading.

"It's human nature to buy into a market that is already showing strength," said Robin Bhar, metals analyst at UBS Investment Bank.

"Most fund managers have a herd mentality and they are just attracted to gains.

"Gold could go higher still, but we don't think this is a right time for buying."

Gold prices have now increased by 50% over the past year.

The price of platinum hit $1,587 an ounce in Monday trading, while silver touched a 27-year high of $16.58.

SEE ALSO
Gold at record on firm oil prices
08 Jan 08 |  Business
Gold surges to new record highs
02 Jan 08 |  Business
Is the dollar losing its lustre?
21 Nov 07 |  Magazine
Gold price dips from 27-year high
01 Nov 07 |  Business

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