Are there growing concerns about the global economy and rising fiscal deficits?
''Gold hits new high as dollar weakens
Precious metals moved higher on Thursday, with gold hitting a fresh all-time high and silver reaching a fresh two-year high, as renewed US dollar weakness against the euro and a bullish outlook for top gold miners set an upbeat tone.
In London, spot bullion hit a nominal record of $1,275.95 a troy ounce, up 0.7 per cent on the day. Gold prices have risen 16.35 per cent since January as investors piled in due to concerns about the global economy and rising fiscal deficits.
Analysts predict that gold could hit $1,300 an ounce before the end of the year and some believe the rally would continue in 2011. Adjusted for inflation, gold prices are, however, a long way from their high above $2,300 an ounce set in 1980.''