Gold breaks (non inflation adjusted) all time high (for any reason other than monetary inflation).
Gold struck a new all-time peak of almost 868 dollars on Thursday as the precious metal benefited from its safe-haven status amid record high oil, a struggling dollar and Pakistan tensions.
The price of gold reached a historic 867.90 dollars an ounce on the London Bullion Market. It later slipped slightly to stand at 866.90 dollars.
“The main reason for the increase was that the oil prices have breached through the 100-dollar mark. This and a weakening dollar, has driven the gold prices higher,” said Gary Yue, a gold dealer at Delta Asia Financial Group.
“Investors are worried about the oil prices and the weak dollar. When the situation is unstable, they invest their money elsewhere and this has boosted the buying interest in gold,” he said.
The precious metal, also being supported by increased jewellery purchases in emerging economic powerhouses China and India, had first smashed its 28 year-old record of 850 dollars an ounce on Wednesday.
