The gold price has been rising strongly since early October, increasing by almost 5%, and reached a new high on October 27 when the gold fix touched £1659.20 before dropping back slightly. During the previous spike back in April, the gold fix rose to £1627 – a record level at the time.
These results are numerical highs and do not account for inflation.
Brighton-based precious metals dealer Michael Bloomstein told ATG: “The price is going through the roof. We’ve been very busy with lots of large bars and coins coming in to be scrapped but, interestingly, not so much jewellery and small items at the moment. Perhaps people are waiting to see if the price goes even higher?”
In terms of the reasons behind the current rise in gold, Bloomstein said: “Regrettably the Middle East situation is an important factor in investors looking for risk-averse areas. But also concerns over high rates of inflation, the banking system and economic growth have made people look more towards tangible assets.
“The Gaza crisis has effectively accelerated these factors.”