Gold Reaches All-Time High

If you have invested any money in gold, you may be jumping for joy right now as the price of gold has climbed to an all-time high on Wednesday. Whereas the previous high for gold was set on March 18, 2008, at $1,003.20 an ounce, gold is now worth $1,020.20 an ounce due to a sagging dollar and concerns about inflation.
 
The dollar, however, has fallen to a one-year low thanks to increased optimism in global economic recovery and many investors’ desire to acquire riskier assets, such as stocks. According to most analysts, the weakness of the dollar is the main factor in gold’s soaring value, a relationship that has long been true of the value of the two commodities.
 
Gold prices have also rallied due to a concern that the government’s bailout efforts could eventually lead to a staggering bout of inflation several years down the line as the government continues to print more money. Such a process has led many investors to want to hold more reliable assets, namely gold.

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