Sterling gold has hit new pricing heights as the pound struggles due to uncertainty spinning out of the hung parliament. The Greek debt crisis has also played a part in the faltering pound but gold is showing no sign of abating its relentless rise up the fiscal chart.
In the last week gold prices shot up to £773 per ounce, its highest ever worth, giving a 25 percent rise for the last year. Gold has proven to be the most bankable investment option of 2010 and its demand is seemingly growing by the day.
Gold has always done well in times of UK elections and this year has been no different. Investors turn to gold as it offers good insurance in the face of a hung parliament, a scenario that always leads to volatile markets. In the last decade gold has outperformed equities and overall gold’s sterling price has risen by over 320 percent in the last ten years.
A number of other factors have also led to gold’s rise, including dwindling interest rates, as UK investors seek out different ways to see returns on their cash.
Juan Carlos Artigas from the World Gold Council told The Telegraph: "Gold's continuing upward price trend is anchored in solid fundamentals." James Moore from The Bullion Desk added: "Gold looks set to be driven by further safe-haven investment demand."