17th August 2011
Renewed concerns about the health of the European economy saw the value of gold climb higher on Tuesday (August 16th).
Gold for December delivery rose by $27 to finish at $1,785 an ounce, meaning its price has now increased by about ten per cent since August 1st, the Associated Press reports.
The precious metal's reputation as a safe haven makes it popular in times of uncertainty, with fresh worries about slowing economies in Germany and France giving investors another reason to buy gold.
A new report from the European Union revealed lower-than-expected growth for both countries in the second quarter of the year.
Some experts have claimed golf prices could soon reach $2,000 an ounce, or even $3,000 if the global economy fails to stabilise.
Graeme Forbes, chartered financial planner at Intelligent Capital, told the Scotsman that gold currently "has all the hallmarks of an asset bubble".
He said: "Prices may go higher and there may not be a crash, but demand will reduce and prices with it."
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