Gold Breaks Records, Dollar Weakens
October 13, 2009 by Mark Ellis
Filed under Business
The ongoing economic troubles have taken their toll on the dollar as investors worry about the stability of the currency and the possibility of inflation. However, the conditions that spell tough times for the dollar have also set the groundwork for the meteoric rise of the value of gold, which today reached an all-time high of $1,069.70 an ounce in New York, surpassing the record set on October 8 of this year.
According to analysts, gold is on the way to its ninth straight annual gain, its value having increased 20 percent this year alone. However, the dollar has plummeted 6.8 percent this year as other currencies gain traction in the investment market, reaching a 14-month low today. Concern over the weakness of the dollar has been the main driving force behind gold’s rally, according to analysts.
Gold may continue to gain value in the future if banks across the world continue to shy away from the dollar and diversify their investment portfolios instead. The overwhelming perception that the dollar will continue to weaken and that foreign investors are beginning to look for another currency in which to invest should keep the price of gold high for some time.
Image: Flickr
