Gold hits a two decade high

Submitted by Craig Strzelecki on 19 April, 2006 - 14:36

Investment funds are driving the increased demand for precious metals. These price levels haven't been reached in two decades for both gols and silver prices. Higher price levels for gold and silver were driven by turmoil in the Middle East, rising oil prices and a weakening US dollar. The active June contract for gold peaked at $US623 an ounce on Tuesday 18th April 2006. Gold futures haven't seen this since 1980. for silver, May silver, the most active silver contract, hit a high of $US13.68 an ounce, a price not seen since 1983. Inflation concerns are a result of rising energy prices and these precious metals are seen as a hedge against the inflationary pressures.