English• Gold price jumps over 1,000 USD/ounce
Investor distrust in the capital markets and the fear of a consumer price hike and a subsequent increase in the inflation rate has pushed the price of gold to a six-month peak as capital owners are focusing on safer investments, to the loss of the more venturous options.
Gold is traditionally used as protection against inflation and potential loss of capital. After remaining constant for months, the price of gold gained 5% in only four days to roughly 1,006.7 USD/ounce in London yesterday.
The hike in the gold price followed the decline of the U.S. dollar last week, as the two are usually inversely proportional.
Analysts quoted by Bloomberg explain the rapid appreciation of the gold by the investors" aversion to risk, as safer placements are sought in waiting of dramatic declines on international markets.
The price of gold in Romania is now 94.88 RON/gram, after four days of steep ascension from 89.98 RON/gram last week. International analysts are confident that the increase in the price of gold is the result of speculations and expect it to remain above 1,000 USD/ounce for a while.
The beginning of the ongoing economic crisis caused the capital market to start declining, which in turn inflated the price of gold by 60% from the beginning of 2007. Concurrently, the New York Stock Exchange Dow Jones Index lost 25%.
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