Page last updated at 10:39 GMT, Tuesday, 29 January 2008

Gold price reaches another record

Gold bracelets
The price of jewellery is likely to go up, analysts say

Gold and platinum have both hit fresh all-time highs for the third straight trading day, lifted by expectations of a further cut in US interest rates.

In Tuesday trading, gold was $929.40 an ounce, while platinum touched $1,735.

As fears about a US recession continue, gold is seen as an attractive asset given the current economic uncertainty.

The weak dollar - which may fall again if US rates are cut - also boosts gold as it makes the metal cheaper for holders of other currencies.

Analysts said gold prices were being lifted further by power cuts halting production at some of South Africa's biggest mines.

Platinum is also being bought as a haven investment, with high demand further led by carmakers, who require the metal for their vehicles' catalytic converters.

Analysts said knock-on rises in the price of jewellery were now inevitable.


SEE ALSO
New record for gold price at $923
25 Jan 08 |  Business
Gold price at fresh all-time high
14 Jan 08 |  Business
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


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