The price of gold soared to a fresh all-time high today as world markets rallied, with sterling inching up against a weak dollar.
Gold topped $1,058 (£659.20) an ounce on the London Bullion Market on the third day of rises, as the weakening dollar continued to make the precious metal an attractive buy for investors.
The dollar was down 0.7 per cent against most major currencies, almost back to its year low against major currency indices. Against sterling, it was $1.60.
The high flying Australian dollar continued its run to a high of 90.3 US cents after Australia became the first country in the OECD to raise interest rates earlier this week and its unemployment rate dropped unexpectedly to 5.7 per cent.
The euro rose against the dollar as the European Central Bank, which reports today, was widely expected to keep its main interest rate steady at 1 per cent
World stocks showed a positive performance with the MSCI’s all-country index up 0.8 per cent while emerging market stocks climbed to their highest level this year.
The FTSE 100 rose 4.42 points, or 0.7 per cent, to 5,143.32 on the back of earlier gains in commodity stocks.
The Bank of England, due to rule on interest rates at noon, iss expected to keep interest rates unchanged at their lowest ever level of 0.5 per cent.
In the UK, one of the biggest movers was Burberry, the luxury goods firm, which rose 11.5p to 516p a share on the back of positive broker notes and upgrades.
On Wall Street yesterday, Alcoa, the US aluminium firm, boosted the market by posting a surprise profit after three quarters of losses. Aluminium rose 1 per cent while copper rose by 2.3 per cent.
Japan's Nikkei index closed up 32.87 points, or 0.3 per cent, at 9,832.47, with the yen nearing an eight-and-a-half month high against the dollar.
