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LONDON: The price of gold rose to a record high point of
976.32 dollars per ounce in morning trading here on Friday as the
dollar struck fresh historic lows against the euro, traders said.
The previous record high price for an ounce of
gold was 964.99 dollars, reached on Wednesday.
A weak US currency boosts demand for
dollar-denominated raw materials such as gold because it makes them
cheaper for buyers using stronger currencies. However the increased
demand eventually leads to higher prices.
Demand for gold tends to rise at a time of
uncertainty about political or economic conditions, and when
inflationary pressures appear to be building up.
-- AFP
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