Due to fear of dollar inflation the price of gold has risen to $1,043.77 an ounce. Yesterday, news leaked that China, Russia, Japan and the Middle East want to price oil in a new basket currency, consisting among others of gold, and no longer in dollar. Investors dread a decline in the dollar and an investment in gold gained appeal, wich is believed to be a more stable currency due to its independence of financial markets. This grasp for consistency instigated a huge rise of mining stocks yesterday, causing the FTSE 100 to close up 113 points, at 5138.
Source: BBC News
Willem Huyghe
