16 Sep 2010

Price of gold at record high

7:42 am on 16 September 2010

The price of gold has surged to a record high, as investors seek shelter from the economic uncertainty and flee the US dollar.

The metal is seen as a safe haven for investors, and its price jumped more than 2% to almost $US1275 on Wednesday.

It has slipped a little since to $US1267.25 per ounce, although prices are almost 16% higher than they were at the start of the year.

ETF Securities senior analyst Martin Arnold says that indicates nervousness about the health of the global economy.

New Zealand Mint head bullion trader Mike O'Kane says investors are looking for a hedge that will hold its value, in the face of economic instability and fears of further financial crisis.

In New Zealand dollar terms, the gold price remains fairly static due to the currency holding against the US dollar.

However, Mr O'Kane expects trading volumes to increase, driven by retail investors and institutional buyers.