Gold has climbed to its highest level in more than five months as speculation the next round of quantitative easing (QE) in the US is just weeks away pushed the precious metal higher.
Gold's spot price rose 0.5% to $1,696 per troy ounce this morning, the highest since Mid-March, as it extended recent gains.
Since hitting a low point in May below $1,600 it has gained over 5%, although it remains some way off February's high when it traded near $1,800.
The gains come as weak data from across Europe, China and the US puts further pressure on policy makers to take action to boost growth.
Last week Federal Reserve chairman Ben Bernanke said the US central bank was ready to take action to tackle unemployment, pledging further stimulus as and when it is needed.
The European Central Bank (ECB) is also expected to launch its own bond-buying programme in order to bring in yields on peripheral debt, as it moves to tackle the eurozone crisis.
Investors are now piling in to precious metals in anticipation of further easing, with Gold ETF holdings hitting a record high of 71.729 million ounces by the end of last week.
August recorded an inflow of 1.8 million ounces, representing a near 3% rise, the biggest monthly gain since November according to Bloomberg data.
Silver, both a precious and an industrial metal, has seen its spot price rise nearly 10% over the past two weeks, well ahead of a 4% gain in gold.
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