Gold Hits Record High Over 1167 Dollars an Ounce

Gold prices jumped today to record-breaking prices of $1,167 an ounce as the strength of the dollar failed and investors ploughed their resources into bullion.
When other financial markets are uncertain, gold prices rocket. Gold is a safety net and a dependable asset in times of crisis; a trend which has seen bullion prices rise by 32 per cent so far this year and continue to raise the bar of increasing price thresholds.
Monday’s sharp ascension saw prices shoot up by $15 an ounce from the market closing price on Friday. With US interest rates hitting disappointing lows, gold is a more attractive investment opportunity, leading to increasingly bullish attitudes on the gold market from top analysts.
“We’re in unchartered territory. It’s going to move fairly freely,” ANZ senior commodity analyst Mark Pervan told Reuters, “Momentum becomes quite a big driver of prices. You could see the hint of safe haven buying returning”.
Momentum is certainly with the developing economies in the current market. Demand is being pushed by the BRIC nations of Brazil, Russia, India and China, the fastest growing economies in the world. Earlier this month India purchased 200 tonnes of gold from the International Monetary Fund for $6.7 billion (£4.1 billion), emptying nearly half of the IMF’s gold reserve.
With such a voracious appetite, analysts now expect gold to hit the magical $1,200 per ounce figure sometime in the next year. Afshin Nabavi from refiner MKS Finance told the BBC: “It looks like $1,200 will be seen much sooner than expected.”