GOLD PRICE BREAKS THROUGH US$1000 BARRIER
8 September, 2009: The gold price today broke through the ‘symbolic’ $1000.00/oz mark reaching $1004.50 on the 11am London price fix, and topping $1007 during morning trading. Before early September, the highest 2009 price was on 20 February when gold fixed (in the afternoon) at $989 and it has traded in the range $870 to $993 ever since, with an average price over that period of $879.
The rise translates to an annual increase of more than 21 per cent on the average price in September 2008, which was $829.93oz
Aram Shishmanian, CEO of World Gold Council, commented:
“Reaching the $1000 mark once again shows that this price level is no longer the watershed for gold that it once was. The sustained demand we are seeing from investors is, however, not wholly about returns. Investors are turning to gold as they seek assets which preserve their wealth, whatever the financial weather. 2009 has seen record inflows into exchange traded funds and significant increases in retail demand for bars and coins as investors around the world took steps to diversify risk in a systematic way and improve their portfolios’ long term prospects.
“The stability in the gold price over the long term is testament to the diversity of gold’s
demand base, which insulates the price from movements in any single category or country. This is a luxury many other assets, more closely linked to industrial output or consumer spending, do not enjoy. This diverse demand base has helped support the price despite a pressure on jewellery demand driven by ongoing economic uncertainty and high local gold prices.”
Today’s $1000/oz record follows a sustained rise in price over the past seven years.