The price of gold edged to its highest level in 18 months as investors seek alternative homes for their cash amid US dollar weakness and predicted continuing low interest rates.
Gold touched 1,007 US dollars an ounce at one point on Tuesday - a record high for the year and the best price since the historic levels reached in March last year.
The precious metal is traditionally seen a "safe haven" investment for investors and tends to benefit when markets and economies hit troubled times and confidence erodes.
But it also moves as a counterweight to the US dollar - also considered a safer place for cash - and tends to become more attractive to investors looking to preserve their capital when the 'greenback' takes a tumble.
David Jones, chief market strategist at IG Index, said that recent falls in the dollar have driven interest in gold.
''It has been pretty boring for some time, the price of gold, but one of the things that has been driving it in recent days has been the weakness in the US dollar,'' he said.
Gold has enjoyed a significant rally in recent days, rising by 50 dollars since September 1.
