Dollar’s record low levels contributed to the record rise in gold prices to $450 an ounce. This is the highest price in 16 years as gold began to be increasingly viewed as an alternative investment.

 

Stephen Abbriano and Robert Lockwood, analysts at Bank of Nova Scotia in New York, said that `the euro gained against the dollar'' which ``in turn helped the gold price.'' They added that ``a convincing break would suggest a goal of $453.''

 

Gold for immediate delivery reached $450.05 after a 50-cent rise, which represents the highest level since June 1988.

 

Dollar was at $1.318 on Wednesday in New York. The 7.1% rise of the euro in the past two months added to the increase in gold price. Dollar fall was accelerated by the wide-spread feeling that the European Central Bank will not take active measures to combat euro’s unwelcome rise.