Gold prices reach a record high of $1,900

August 23rd, 2011 - 7:32 pm ICT by Aishwarya Bhatt  

New York, Aug 23 (THAINDIAN NEWS) The price of Gold reached a new record high when the price of the precious metal hit the $1,910 mark. Analysts say the surge in the price of gold is driven by investor fears in the economy.

The chief metals economist at Morgan Stanley Australia Ltd, Peter Richardson, explained that, “Gold has continued to blast ahead even with a relatively strengthening U.S. dollar, strongly performing treasuries and other safe havens. All of that tells me that this is really all about preserving real purchasing-power.”

Experts expect the price of the metal to hit the $2,000 mark by the end of the year. The head of trading at Sydney’s Investec Bank Ltd, Darren Heathcote, announced that, “Things aren’t looking particularly positive. The market is very, very skittish and it wouldn’t surprise me to see gold push higher in the current environment.”

$2,000 per ounce of gold by the end of the year will represent 41 percent increase. The price of the metal has reached 16.8 percent increase in August. The month is turning out to be the best month for the metal since September 1999.

Investors are buying the commodity to secure their funds.

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