Among all that glitters, gold glows stronger. The yellow metal hit a new high of $1048.43 per ounce in spot trade on Wednesday, even as the futures scaled up to the $1050 per ounce mark.
Weakness in the US dollar and rising inflation have stoked fears of value erosion and driven investors to the perceived safety of the glowing metal.

Alan Heap, Managing Director, Global Commodity Analyst at Citi Investment Research, said, “Weakness in US dollar caused gold prices to break through. Gold prices could go high as $2000 from here. From fundamental point of view, I am nowhere near that bullish.”
Rising gold values might, however, dampen some of the festive season demand in India fear traders, as gold has gained 20 per cent already in 2009.
But there are some who believe the appetite will revive once conviction returns on the sustainability of the uptrend.
Mehul Choksi, MD of Gitanjali Gems, said, “I believe that gold will go up to $1200. Inflation, which is still to come, will be a major driver for gold. Gold has only one way to go according to me.”

Optimism on the outlook for gold is shared by most bullion trackers, who see the high dollar liquidity on the back of continued stimulus measures in the US, nudging the yellow metal higher.
So, expect your stash of gold to grow in value in the coming days.