© Reuters Gold continues to hit all-time highs
Proactive Investors – prices have hit another all-time high, having risen for the eighth consecutive day as it enjoys its best week in the last five months.
prices are up 0.5%, breaking the US$2,170 an-ounce mark for the first time as a drop in interest rates pushes investors to find safer assets.
Analysts predict gold could reach £2,300 within the next twelve months.
Adrian Ash, director of research at BullionVault, said: “This week’s jump in gold prices has come as expectations for US rates have eased back while sword-rattling between Moscow and Nato has worsened and the Middle East conflict continues.
“This matches the pattern of previous 5-day runs of new record highs, all of which came during periods of financial, monetary or geopolitical stress.
“But despite making a run of new all-time highs this week, gold is very far from a crowded trade, never mind a bubble.
“While the past few days look dramatic, and while the sudden jump in hot-money betting on gold derivatives contracts will naturally burn itself out, the underlying uptrend remains steady. It’s almost boring in fact compared with tripling over the past 12 months or against the big gains in equities led by US tech stocks.”
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