2 December, 2009

Gold has been on a record-breaking climb over the past few months as the dollar weakens. Gold is seen as a hedge against a weak dollar and potential inflation because of its stable store of value. Just over a year ago, gold prices hit a low of around $700.

Gold prices breached $1,200 an ounce on Tuesday, rallying as the dollar fell further against other

Investors sell dollar because of its weakness and invest in safer bets like metals and commodities and gold is seen as a safe bet against falling dollar.