Gold price reaches another record

Gold and platinum have both hit fresh all-time highs for the third straight trading day, lifted by expectations of a further cut in US interest rates.

 

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In Tuesday trading, gold was $929.40 an ounce, while platinum touched $1,735.

 

As fears about a US recession continue, gold is seen as an attractive asset given the current economic uncertainty.

 

The weak dollar - which may fall again if US rates are cut - also boosts gold as it makes the metal cheaper for holders of other currencies.

 

Analysts said gold prices were being lifted further by power cuts halting production at some of South Africa's biggest mines.

 

Platinum is also being bought as a haven investment, with high demand further led by carmakers, who require the metal for their vehicles' catalytic converters.

 

Analysts said knock-on rises in the price of jewellery were now inevitable.