LONDON: Gold prices have risen above $1,000 per ounce, the highest since March 2008 - suggesting investors are wary of the US dollar’s weakness and expect international interest rates to remain low for some time.
The gold contract for October delivery traded up $10.10, or 1.0 percent, at $1,005.60 per troy ounce in midday trading on the London Metals Exchange - the highest since it hit a record of $1,038.60 on March 17 last year. Gold is typically bought as an alternative to the dollar among safe-haven assets favored by investors seeking to preserve capital. So its rise often correlates to a drop in the value of the American currency.
The dollar fell to 92.29 yen on Tuesday from 93.05 yen the night before and slid to $1.4434 against the euro from $1.4332 as stock markets rose and investor sentiment improved.
