|  Gold hits high despite global concerns -
January 3rd, 2008
Gold hits high despite global concerns
The precious yellow metal struck an all time new height as it crosses $866 mark at the London Bullion Market on Thursday.
Global worries such as rising oil prices, tensions in Pakistan and Iraq and a struggling dollar cannot prevent the gold from achieving this record feat.
The price of gold reached an historic $866,53 an ounce on the London Bullion Market. It later slipped back slightly to stand at $865,76.
gold prices is also winning support from increased jewellery purchases in emerging economic powerhouses China and India, first smashed its 28-year-old record of $850 an ounce on Wednesday.
According to analysts, current price movements were being slightly exaggerated by the lightness of holiday trade, which meant large transactions could influence the market more than usual.
Political unrest in Pakistan following last week's assassination of opposition leader Benazir Bhutto has led to fresh interest in gold because the precious metal is regarded as a haven in troubled times.
Higher oil prices also encourage the buying of gold, which is seen as a hedge against inflation, which is being driven in many countries by the surging cost of crude.
Benchmark oil prices hit $100 in New York on Wednesday for the first time, owing to tight supplies and continued strong demand.
Gold prices, which last year rose 30%, were also getting a boost from the weakness of the United States currency, which encourages demand for dollar-priced commodities because it makes them cheaper for buyers using stronger currencies.
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