On Tuesday, gold prices rose above $1,000 per ounce and that is the highest level since March 2008 and it is suggesting that investors are uncertain about the U.S. dollar’s weakness and they anticipate international interest rates to remain low for some time.
On the New York Mercantile Exchange, for October delivery the gold contract traded up $9.69, or 1.0%, at $1,005.00 per troy ounce. That is the highest since a record of $1,038.60 has been hit by it on March 17 last year.
Among safe-haven assets gold is typically bought as an alternative to the dollar favored by investors who look forward to preserve capital. So a rise in its price often correlates to a drop in the value of the American currency.
