The fallen dollar and rising oil prices prompted a surge in gold prices on Thursday to the highest levels in the last 28 years, while platinum on the London market reached its highest recorded price, driven by rising bar prices and supply concerns.
The price of gold on the London spot market reached $747.70 per troy ounce – the highest level since January 1980, after which it traded at a slightly lower $747. Traders and analysts say that investment funds seeking safer havens for their money amid persistent concerns about credit market issues have gone wild and will ultimately target a record high above $800. "Gold is approaching a key price level of $750 per ounce, which is likely to be tested in the short term if the stimulating impetus from the dollar and strong oil prices continues," said Alexander Zumpfe, a trader at Heraeus Precious Metals. Platinum reached a record high price of $1,396 per ounce on the London spot market, compared to the previous record level of $1,395 achieved in November 2006. Traders cited supply concerns in South Africa due to power supply disruptions and rising interest rates charged for borrowing that metal as reasons for the price increase. (H)
