The gold price pushed on to a new record high today amid fears of full scale war in the middle East and political uncertainty ahead of the knife edge US Presidential election.
The price of an ounce of gold rose a further $17 to hit a high of $2.758.72 in trading in London this morning.
Over the past 12 months the price of the yellow metal on international markets has surged almost 40%, or more than $770, from $1,947 an ounce.
Gold is seen by investors as a “safe haven” hedge against political and economic uncertainty, which has led to a significant rally in recent days as the U.S. presidential election approaches.
A more aggressive approach to interest cuts by the world’s major central banks has also burnished gold’s attractiveness.
Analysts expect the gold price to maintain its upward march possibly hitting an unprecedented $3000 within six months.
Peter A. Grant, vice president and senior metals strategist at Zaner Metals, said: “Geopolitical tensions remain the primary driver... Two weeks out from the U.S. election, the race seems to still be a dead heat, and so a fair amount of political uncertainty is also driving safe haven interest in gold,
“Certainly if things heat up further in the Middle East, we could see $3,000 before the end of the year, but I’m sort of leaning more towards Q1,”
Imaru Casanova, portfolio manager for gold and precious metals at New york investment management firm VanEck, said during a webinar for clients: ”Unfortunately geopolitical risk today seems to be getting worse every day. And so that obviously will continue to support gold,”
