Gold climbed towards its highest level in almost eight years on Wednesday as investors looked for a safe place to park their cash at a time of rock-bottom bond yields and expectations for a rise in inflation.
The price of gold in the spot market on Wednesday rose as much as $10 to $1,779 a troy ounce, its highest level since October 2012, before edging back to $1,772. The all-time high for gold was reached in 2011 when it hit $1,900.
Analysts said the rally reinforced the impression that investors are suffering more bouts of nerves over the outlook for global trade and coronavirus, with caution also evident in stock markets. Concern that government bond yields will struggle to keep pace with inflation in the coming months has also boosted demand for the precious metal, which has gained about 16 per cent in price this year.
Goldplat plc (LON:GDP) is an AIM-listed, profitable gold recovery services company with two market leading operations in South Africa and Ghana.