Further weakening of the US dollar yesterday was reflected in record spot gold prices around the world and the Australian dollar almost reaching parity with the greenback.
In currency trading late yesterday, the greenback was at US99.7c against the Australian and US76.34 against the New Zealand dollar, while both the euro and yen strengthened against the greenback, the latter at a 10-year-high.
After the global spot price in gold reached a high of $US1374 ($NZ1803) in trading on the New York exchange, mining stock Oceana Gold spiked yesterday by 25%, to hit a high of $5.15, before falling to around $5.10, as investors sought refuge in gold-related stocks.
Gold, alongside prices on several industrial metals, hit its latest high as investors worldwide react to mounting concern over the weakening US dollar, the sovereign debt of European nations and performance of equities and some commodities.
While investors and analysts are becoming nervous about gold's stellar rise, Craigs Investment Partners broker Peter McIntyre says indicators are the rally has further to run.
Historically, gold price rallies lasted four years, but this rally was in its ninth year and was considered "the most durable rally in history".
While he did not discount a break in the rally, he said Craigs' most recent forecast was for gold to rise to $US1600 by the end of 2012.
Several factors were boosting the price, including falling production, increasing demand from banks and investors and low interest rates worldwide.
