Page last updated at 16:25 GMT, Monday, 9 November 2009

Gold hits new high on weak dollar

Gold bars
Demand for gold increases in the run-up to Christmas

The price of gold has touched a new all-time high as the precious metal becomes increasingly attractive compared with the weakening dollar.

Gold rose by almost $12 to hit $1,107.2 an ounce, compared with $1,095.7 at the previous close.

Growing demand from emerging markets, particularly in Asia, is also helping to drive the price of gold.

Gold and other commodity prices have surged recently as investors have moved away from the US dollar.

The dollar has fallen by 13% against the pound this year, and by 7% against the euro.

"The dollar will continue to have a very big impact on metals and gold", said Afshin Nabavi at gold bullion refiner MKS Finance.

Increased demand among emerging market governments looking to diversify their foreign exchange holdings has also pushed the price of gold higher.

There is also higher demand from individuals. The price of gold is typically strong in the October-to-December period because of the higher demand for jewellery in the run-up to Christmas and the Indian festival of Diwali.

Print Sponsor

Gold hits new high on India deal
04 Nov 09 |  Business
Gold sees third consecutive high
08 Oct 09 |  Business
Why the price of gold is rising
13 Oct 09 |  Business
Dollar falls on oil plan report
06 Oct 09 |  Business
Is it time to sling your bling?
16 Jun 09 |  Business
Dollar's reserve status 'is safe'
15 Jun 09 |  Business

Has China's housing bubble burst?
How the world's oldest clove tree defied an empire
Why Royal Ballet principal Sergei Polunin quit


Americas Africa Europe Middle East South Asia Asia Pacific