Gold hits new record as investors continue to buy

The price of gold rose to a record level again on Thursday (December 3rd) as investors’ appetite for the precious metal continued to grow.

Gold for February delivery briefly touched $1,227.50 on the New York Mercantile Exchange before settling at $1,218.30 - a rise of $5.30 - while the price of other metals such as silver and platinum fell.

Analysts have noted that the appeal of gold as an alternative investment has been increasing steadily this year, driven mainly by the weakness of the dollar and the metal’s reputation as a safe haven.

Last week, the Daily Telegraph described the demand for gold as ’one of the fastest growing trends in the investment community’ and noted that ’everyone is buying gold’, from the Indian central bank to individual investors in the US.

Meanwhile, CMC Markets analyst Michael Hewson suggested that gold prices could hit $1,500 by mid-2010.

’It is a store of value while investors have serious doubts about the global financial system,’ he explained.
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