Gold touched a record high of $1,881.40 an ounce yesterday as demand climbed in the face of severe losses on the global stock markets. The new high marks a 31 percent increase in gold prices since the beginning of the year.
Ã¢â‚¬Å“The drivers of the gold price at this point in time are all future expectations, such as more global liquidity and worsening of the status quo in global GDP,Ã¢â‚¬Â said Bayram Dincer, an analyst at LGT Capital Management in Pfaeffikon, Switzerland. Ã¢â‚¬Å“Either the gold market has adopted a very negative, and in our opinion not justifiable, negative, Armageddon-like view, or it is building an irrational bubble.Ã¢â‚¬Â
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