The price of gold hit an all-time record above $1,045 per ounce on the world markets today as the dollar weakened further.
The surge in the price takes the precious metal above the $1,032.80 it hit in March last year.
The dollar was hit by a report in the Independent newspaper claiming that the Gulf nations were thinking of ditching the US currency as the world denomination for oil.
The newspaper said the Arab states were in talks with Russia, China, Japan and France to replace the dollar with a basket of currencies – but the report was unsubstantiated, and Gulf officials denied it.
Declines in the dollar make metals cheaper to non-US investors and more attractive to those seeking a safe haven for their funds.
Moreover, gold has been boosted by worries over the possible re-emergence of inflation as world fiscal stimulus measures feed through.
'In an environment where interest rates are virtually zero, the incremental cost of moving into gold is nil. It stands to reason for investors that gold is more desirable,' said Jack Ablin, chief investment officer at Harris private bank in Chicago.
The price of gold is also typically strong in the October to December period because of the higher demand for jewellery in the run-up to Christmas.
Copper prices were also sent higher, above $6,000 a tonne.
