As stock markets sink following the signing of the economic stimulus package, precious metals are seeing the highest prices in many months.
The traditional safe haven is becoming a mainstream asset as investors fear inflation and continuing economic uncertainty, according to moneynews.com.
"[Gold] is moving more toward the mainstream. There are retail investors, but it is also becoming part of the asset allocation of larger fund managers having a portion in gold," said Axel Merk, portfolio manager of Merk Mutual Funds, which have more than $310 million of assets, as quoted by the website.
For that reason, he added, "we are far away from the top of the gold market."
In Singapore at 2:06 p.m. on Wednesday gold for immediate delivery was trading at $973, while gold for April delivery was up 0.7 percent at $974.40 in after-hours electronic trading on the Comex division of the New York Mercantile Exchange, according to Bloomberg.
On Tuesday, President Obama signed the stimulus package passed by Congress last Friday hailing it as "the beginning of the end" of the financial crisis. However, the stock market failed to be convinced as the main U.S. indices fell by almost four percent.