Gold glitters more due to dollar decline

Gold glitters more due to dollar decline
The yellow metal has been scaling new heights every passing day and jumped to an all-time high as investors are losing interest in currencies due to their volatile nature. Gold has emerged as a safe investment mode among investors as indicated by skyrocketing prices of the yellow metal.

Prices of other precious metals including silver, platinum and palladium are also on rise and expected to pick up further due to apprehensions of further decline in dollar rates.

Wallace Ng, chief dealer with Fortis Bank in Hong Kong added, “Investors are taking shelter in gold. I see gold rising to $1,300 an ounce.”

Meanwhile, dollar rates declined further under the impact of more than expected rise in Japan’s economy which is the world’s second-largest economy. It has also being felt that continuous depreciation of US dollar may significantly impact global asset prices in the coming days.

Gold prices reported an increase of 0.7 percent to $1,126.07 an ounce due to heavy demand by investors. Gold contract for December surged 1 per cent to a record $1,127.90 an ounce on the Comex division of the New York Mercantile Exchange.