The price of gold reached new record levels as the precious metal rose as high as $1,920.49 per troy ounce following poor economic news that came out of the U.S. and the EU, The Wall Street Journal reported.
Investors often rush to the precious metal markets when global economies are struggling due to the safe-haven nature of gold, as it retains its value during a decline of currencies, reported the newspaper.
“If we get another big sell-off in European equity markets and in bonds, we will see gold reasonably well-supported on the back of that,” Chris Weston, an institutional dealer for IG Markets, told the Journal.
Metals experts have noted that the precious metal may not return to lower levels anytime soon, due to the state of Western economies and the upcoming Indian wedding season that usually brings significant purchases of gold, reported the newspaper.
An increase in exports of the precious metal from Turkey has also led to the high levels that gold has achieved, as the country almost doubled its output of the commodity, the International Business Times reported.