Gold prices ended the week at a record high of more than $1,280 a troy ounce as investors piled into the precious metal amid growing fears that central banks would begin a further round of monetary easing.
The rally was helped by signs that central banks, led by Russia and several Asia-based monetary authorities, would this year be net buyers of gold after two decades of net selling, and by bullish comments from leading gold miners. AngloGold Ashanti said it planned to wind up its forwards sales, a bet that high prices are here to stay.
Spot bullion hit on Friday a nominal record of $1,282.75 a troy ounce in London, up 3 per cent on the week. It has gained 17 per cent this year, extending a decade-long rally. But adjusted for inflation gold prices are a long way from a high set in 1980.