On Monday, the price of gold approached the level of $800 per ounce, reaching its highest level in 27 years due to the weak dollar exchange rate and record-high crude oil prices. Gold prices have strengthened by about 30 percent over the past year.
On the London precious metals market, the price of gold reached as high as $794.70 per ounce – a level last seen in January 1980. "Record oil prices and the multi-year weakness of the dollar exchange rate continue to be the perfect recipe for rising gold prices, which are now just $5 away from the $800 per ounce level," says James Moore, an analyst at TheBullionDesk.com. The historical record for the price of gold is $850 per ounce, reached on January 21, 1980. The weak dollar supports the rise in gold prices as it makes dollar-denominated commodities cheaper for buyers using stronger currencies. (H)
