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Gold Hits Another High!
Closed today at $509.20.
Strong demand, stagnating supply, a recent shortage of forward selling by gold miners and more orderly sales from central banks have all facilitated the rally. Heavy buying began in 2004 as investors turned away from a (largely) stagnate stock market and instead purchased commodities, which outperformed traditional stocks and bonds.
Speculators have bought spot gold and futures, specialist investment products and shares in mining firms, radically bringing up the prices due to the relatively small supply of commodities compared with other asset classes.
Other precious metals have also followed gold's lead. Platinum reached $1,003 an ounce in New York after touching $1,006, the highest since March 1980. Palladium was at a 19-month high of $270/274 an ounce, up from $264/268. Silver was unchanged at $8.54/8.57, but off an earlier peak of $8.64, the highest since August 1987.
