Gold prices have risen to an all-time high.
The precious metal topped $2,500 an ounce for the first time as factors ranging from a weaker dollar to growing expectations for a US interest-rate cut in September bolstered demand.
The dollar slipped against a host of global currencies – including the pound – as weak construction figures in the US fuelled hopes that the Federal Reserve will cut rates next month.
Worries about war in the Middle East also saw investors look for a safe place for their cash, with gold being one of the top choices.
One of the Fed’s interest rate setters said the US economy is not showing signs of overheating, in a signal that rates will be cut.
Fed Bank of Chicago president Austan Goolsbee said: ‘You don’t want to tighten any longer than you have to.’
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