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Sunday 09th of January 2011
September 8, 2009    

Price of gold hits 6-month high of $1,000

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by Kay Murchie

The price of gold, which is seen as an attractive investment in times of inflation, has briefly hit the $1,000 mark - it’s highest level in six months - before slipping back to $999.0 per ounce.

Gold has been growing in value for the last 8 years and peaked at $1,032 an ounce in March last year. So far this year has risen 13.6% in value.

At the same time, the US dollar is falling in value since it traditionally moves in the opposite direction to gold.

Analysts believe the rise in gold suggests that investors believe the global recession is coming to an end but are concerned about inflation.

Sandra Close, an analyst at Surbiton Associates, comments: “Gold’s rising price is due to uncertainty all the way from personal investors right through to institutions.”

“There are questions out there over the health of economies, where interest rates are going. All that encourages gold hoarding,” adds Ms Close.

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