Gold hits new high of US$746 Grant Surridge, Financial Post Published: Monday, October 01, 2007 The price of gold touched a 28-year high on Monday as investors continue to seek refuge from a weak U.S. dollar.
The spot price of gold hit US$746.50 in trading in London, it's highest level since 1980.
"The US$850, which is the January 1980 high, will be passed in this run," said John Ing, chief executive of investment dealer Maison Placements Canada.
View Larger Image Gold bullion in London AFP
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The big story continues to be the suffering greenback, which investors are fleeing from in favour of gold.
Combine that with a dearth of new gold discoveries limiting the amount of the precious metal in the market, as well as burgeoning jewellery demand in countries such as China and India, and you have a recipe for sustained strong gold prices, said Mr. Ing.
In a report last week, DundeeWealth Inc. economist Dr. Martin Murenbeeld cited the possibility of a recession in the United States as a possible bearish factor weighing on the price of gold heading forward.
He estimates the price of gold at US$754 by the end of this year.
MON Price at posting:
0.0¢ Sentiment: Buy Disclosure: Not Held
