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SPDR Gold Shares added $1.2 billion (£728 million) to its assets yesterday as the cost of the precious metal increased by two per cent.
Matthew Rubin, director of investment strategy at Neuberger Berman, told the Wall Street Journal that the interest in gold is unlikely to abate in the near future.
"A year ago, people were saying it was overpriced. I think as long as there's uncertainty, people are going to continue investing in it," he commented.
However, he warned that there is a possibility that it will become "too expensive" as an insurance policy if high-net-worth individuals continue to purchase gold.
As evidence of the "risk aversion" demonstrated by those buying and selling on the stock market, at the start of trading today, gold opened at a new high of $1,910, although it soon dropped to $1,904.
Posted by Greg Secker
