Monday, 12th December 2005 (3619 views)

The price of gold has hit its highest level for close to 25 years in today's Asian trading, with funds fuelling the rises, most notably in Japan.

US gold futures rallied for the seventh session on the trot, closing at a 24-and-a-half year high, with interest from both funds and investors after last week's surge above $500 an ounce.

Spot gold topped $535 an ounce before slipping back to $535.75 in afternoon trading.

Other precious metals have been buoyed by gold's rally, with platinum at a peak not seen since March 1980 and silver sitting at its highest level since May 1987.

This month alone has seen a seven per cent rise in gold prices, and the recent rally has consolidated the annual price rise figure, which now sits at over 20 per cent.

Japanese trading in the metal, and the effect of fund managers strategically turning to precious metals to diversify portfolios, have driven the rises.

Meanwhile, since September European central banks have sold over 100 tonnes of bullion.

 

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