Gold soars to record level as dollar weakens

clock

Gold has risen to hit a record $1,498.90 an ounce, with demand fuelled by a declining dollar and concerns following S&P's outlook downgrade for the US.

Over this year, gold has increased 5.3% while the dollar has fallen 4.8% versus six other currencies including the euro and pound, Bloomberg reports. S&P yesterday cut its outlook on US sovereign debt for the first time in 70 years, reducing it from stable to negative. This means the US faces a one-third chance of a downgrade from its triple A credit rating in the next two years, calling into question whether US government debt is risk free. The eurozone sovereign debt crisis is further compounding investor concerns, prompting a flight to perceived safe-haven assets and further portfo...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

Infrastructure: A good investment gone bad – and then good again?

Infrastructure: A good investment gone bad – and then good again?

'Infrastructure - a victim of a unique set of circumstances'

Darius McDermott
clock 02 May 2024 • 5 min read
Investment opportunities 'differ by client age group'

Investment opportunities 'differ by client age group'

‘Advisers should consider personal circumstances when it comes to investment’

Isabel Baxter
clock 02 May 2024 • 1 min read
Future of Investment Festival: Our specialist sessions for advisers

Future of Investment Festival: Our specialist sessions for advisers

Future-proofing advice, building sustainable portfolios, all things SDR

Professional Adviser
clock 02 May 2024 • 2 min read