Bullion outshines record from 1980
By Ambrose Evans-Pritchard
Last Updated: 1:06am GMT 03/01/2008
Gold has soared through resistance to touch an all-time high of $861.20 an ounce in New York, surpassing the record last seen at the height of the inflation crisis in 1980.
Bulls seized the initiative as oil spiked briefly to $100 a barrel and the dollar buckled on bad manufacturing data in the US. The New Year surge - setting the tone for the year - may be viewed with some alarm by central banks, aware that gold often serves as a proxy for inflation fears.
Ross Norman, director of TheBullionDesk.com, said the world faces a new era of "peak gold" in which discoveries become rarer, leaving the market starved of the metal just as demand in China and emerging Asia begins to gather pace.
"Supply is declining despite a seven-year bull run," he said. "Production in South Africa is the lowest since the 1930s, and it is falling in Canada. As for the central banks, they are no longer quite so keen to part with their gold.