"Inflation jitters" keep gold prices high - Thursday 27th December 2007

Gold has hit highest prices for a month due to fears over inflation and rising oil prices, it has been reported.

The assertion was made by Thomson Financial, which reported figures of $825.95 per ounce, the highest since November 27th.

Other factors mentioned as contributing to the price of gold were new statistics demonstrating the decline of the US housing market and the dollar weakening against the euro.

The "inflation jitters", caused by oil prices of $96 per barrel, "helped underpin the metal".

People looking to buy gold will probably be aware that these factors have been boosting gold for the past few months, with record oil prices coinciding with gold price highs in November.

Investors typically turn to gold and oil during times of recession as they are seen as some of safest places in which to put money. Gold in particular is seen by some as being 'recession proof'.
Goldbug, 27 Dec '07

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