Can the price of gold sustain its high levels, that is the question being asked by investors?
Having this week hit its highest price in six months, gold bullion has lost a little bit of its momentum and is trading at just over 424 dollars an ounce. Several factors have been driving up prices according to bullion traders. Mostly it is the weakness of the US dollar, but added to that is the high price of oil and political uncertainty ahead of the US presidential election next month. There is also high physical demand for gold for jewellery with predictions that will grow as India remains a particularly strong market. And there is investment demand. Gold Bullion Securities Ltd. said its sales of gold backed shares have increased by 14% in the last three weeks.