Gold nears $1,200

Gold prices soared to a record pinnacle close to 1,200 dollars an ounce here on Tuesday, as demand for the precious metal was boosted by the weak US currency and a host of other factors, analysts said.
The glamorous metal struck 1,199.49 dollars per ounce at 0905 GMT on the London Bullion Market, after reaching a series of historic peaks in recent days and weeks.
“As ever, another painful week for the US currency saw new highs for gold with the market's impressive advance stalling only a tick away from 1,200 dollars per ounce," said VTB Capital analyst Andrey Kryuchenkov.
He added that most gold traders regarded 1,200 dollars per ounce as a "done deal".
In recent weeks, gold has smashed record after record on the back of the weak dollar, inflationary fears and increasing moves by central banks to diversify assets away from the greenback.
The yellow metal, whose two main drivers are jewellery and investment buyers, has also won favour amid the uncertain economic climate and fears of a mounting Dubai debt crisis. Gold is seen by many investors as a safe-haven.
"Gold continues to benefit from an almost 'perfect storm' of weak currencies, minimal interest rates, fears about future inflation and fears about financial stability," added Capital Spreads analyst Simon Denham.