The price of gold hit an all-time high in New Zealand dollar terms yesterday, precious metal company the New Zealand Mint says.
It said the price reached $1745 for a one ounce coin at the close of business, with New Zealand Mint bullion dealer Mike O'Kane saying the price rose $75 yesterday.
"We are used to seeing price fluctuations of a few dollars a day, but $75 is almost unheard of," he said.
He attributed the rise to the drop in the NZ dollar and steady demand for the metal driving the price up.
"This is great news for canny investors who bought several years ago -- many of them are making huge profits when they cash in their gold stocks," Mr O'Kane said.
According to Reuters data the NZ dollar yesterday dropped to a six-year low against the greenback around US51.60c.
Also gold prices on world markets climbed more than 2 percent overnight Tuesday, rising above $US865 ($NZ1662) an ounce, amid market talk of a large order, with firm investment demand for gold as a haven from risk fuelling buying.
Early today Reuters was reporting that gold had eased a touch as traders took profits after early gains, but held above $US850 an ounce as interest in the metal as a haven from risk supported prices.
The metal had also hit a new record high in sterling terms of STG626.43, ($NZ1686) according to Reuters data, as that currency languished.
Barclays Capital analyst Suki Cooper said a combination of underperformance in other assets, fears over economic growth and the falling interest rate environment were all boosting the appeal of gold.
Major banks Morgan Stanley and UBS upgraded their full-year gold price forecasts, citing safe-haven buying.
US bank Morgan Stanley raised its 2009 gold price forecast to $US900 an ounce from $US750 previously, and its 2010 price view to $US1000 from $US825.
UBS said it now sees gold at $US900 an ounce in one month, against a previous forecast for $US800, and at $US850 an ounce in three months, also against $US800.
