News by Adfero for Simply Business - independent providers of business insurance, business finance, landlord insurance, buy-to-let mortgages & commercial mortgages.
The growing weakness in the value of the dollar is leading to a surge in the cost of gold.
As a consequence of expectations of future interest rate cuts, the value of gold has increased to more than $900 ($458.16).
"Gold continues to receive support from the uncertainty in the financial markets and is likely to appreciate for as long as these uncertainties dog the market," said James Steel, a representative from HSBC, in a report by the Financial Times.
"Such gains are consistent with surging prices and lay the foundation, in our view, for further gains."
During early trading today (January 14th), the value of the dollar declined by one per cent against the yen and 0.6 per cent against the euro.
The value of gold rose to $906.70 per ounce.
New highs were also achieved for both silver and platinum.
In related economic news, the prospect of a successful takeover of mortgage lender Northern Rock are declining, resulting in a fall in the company's share value.
