AFP/London
Gold prices scaled historic heights above $1,150 per ounce last week, buoyed by the weak greenback and recent central bank purchases of the precious metal, analysts said.
Traders said the dollar’s overall weak tone was due to the prospect of US interest rates remaining close to zero for some time yet.
Gold hit an all-time peak at $1,152.85 an ounce on Wednesday, extending this year’s record-breaking run.
“The price of gold moved further north as the dollar’s decline continued,” said analyst Marius Paun at ODL Markets.
“Whilst the US Federal Reserve continues to reiterate that interest rates will remain low, investors appear willing to buy in the precious metal.”
A weak greenback makes dollar-priced assets such as gold cheaper for buyers using stronger currencies, and tends to stimulate demand for them.
By late Friday on the London Bullion Market, gold rose to $1,140 an ounce from $1,104 a week earlier.
Silver gained to $18.18 an ounce from $17.32.
On the London Platinum and Palladium Market, platinum advanced to $1,435 an ounce at the late fixing on Friday from $1,359 the previous week.
Palladium climbed to $360 an ounce from $354.