Gold touched a record high of $1,881.40 an ounce yesterday as demand climbed in the face of severe losses on the global stock markets. The new high marks a 31 percent increase in gold prices since the beginning of the year.
“The drivers of the gold price at this point in time are all future expectations, such as more global liquidity and worsening of the status quo in global GDP,†said Bayram Dincer, an analyst at LGT Capital Management in Pfaeffikon, Switzerland. “Either the gold market has adopted a very negative, and in our opinion not justifiable, negative, Armageddon-like view, or it is building an irrational bubble.â€Â
Source: Bloomberg
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