The price of gold leapt on Tuesday to the highest level since the start of 1980, winning support from runaway crude oil prices, traders said.
On the London Bullion Market, gold prices surged as high as $767,09 per ounce.
Gold prices jumped higher “on a combination of a weaker dollar, geopolitical concerns, positive investor sentiment and record high oil prices”, said analysts at Barclays Capital.
They added: “Geopolitical concerns have come on the back of Turkey debating potential military action in Northern Iraq to combat Kurdish rebels while … crude oil prices have hit fresh all-time highs.”
New York’s main futures contract, light sweet crude for delivery in November, surged to an historic $87,97 per barrel on Tuesday, while London Brent oil hit a record $84,31.
Gold prices are boosted by record high oil prices, which in turn spark inflationary concerns.
The precious metal is seen as a safe haven in times of both rising inflation and geopolitical uncertainty.
In addition, gold benefits from a weak US unit because it makes commodities that are priced in dollars cheaper for buyers using stronger currencies.
Since the start of September, gold has gained more than $100, or about 15%, in value. — AFP