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Gold is a highly sought-after precious metal which, for many centuries, has been used as money, a store of value and in jewelry. The metal occurs as nuggets or grains in rocks, underground "veins" and in alluvial deposits. Modern industrial uses include dentistry and electronics, where gold has traditionally found use because of its...Read more
Gold tops $1,470 on inflation fears, ECB rate speculationApril 08 2011, 3:35pm
Spot gold posted a fresh all time high today, topping US$1,472/oz as investors were buying the yellow metal for wealth protection after Portugal became the third euro zone state to ask the European Union for financial aid to help it tackle its debt problems.
Later in the day, the European Central Bank (ECB) decided to raise its interest rates by 25 basis points to 1.25 percent. However, ECB President Jean Claude Trichet said that the rate hike may not be the first in a series, giving more support to gold.
Low interest rates are positive for gold, which can offer investors better returns.
In addition to that, gold is seen as an inflation hedge, which makes it an attractive asset amid soaring oil prices.
Gold last traded at US$1,469/oz.
Silver and platinum advanced to US$40.15/oz and US$1,802/oz respectively.
Mining stocks were in demand today. Fresnillo (LON:FRES) climbed 3.1 percent, while Randgold Resources (LON:RRS) and Lonmin (LON:LMI) added 1.5 percent.
In the FTSE 250, African Barrick Gold (LON:ABG) and Hochschild Mining (LON:HOC) added over 3 percent.