Page last updated at 11:07 GMT, Tuesday, 8 September 2009 12:07 UK

Gold returns back above $1,000

gold price graph

The price of gold has touched $1,000 an ounce for the first time in six months.

The move could be seen as a sign that investors believe the worst of the global recession is over and are worried about inflation.

Others who are less convinced about the strength of the recovery are moving into gold, which is usually sought as a haven from economic turmoil.

Gold - seen as an attractive investment in times of inflation - has risen 13.6% in value this year.


The US dollar - which often moves in the opposite direction to gold - has been declining during that same time.

"Gold's rising price is due to uncertainty all the way from personal investors right through to institutions," said Sandra Close, an analyst at Surbiton Associates.

Gold bar

"There are questions out there over the health of economies, where interest rates are going. All that encourages gold hoarding," she said.

Gold reached an all-time record of $1,032 an ounce in March 2008.

The commodity is measured and sold in troy ounces. One troy ounce equals 31.1035 grams or 480 grains. One troy ounce is equal to 1.09711 avoirdupois ounce - those widely used to measure weights in the US and UK.

Gold has risen for each of the past eight years.

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