On Thursday, as the Dollar dwindled again and hit the lowest index value in 15 months, gold hit a new record high of $1,194 an ounce. The high rise in the material's rate has fiercely fueled speculations that the central banks would jump in to buy more of it, with the aim to hedge against a rapidly falling currency.
With the latest rise, the price of gold has recorded a whopping 15% rise in less than a month. Demands for the metal have now been fueled on expectations that the trend will not stop and the metal will rise even more in the coming times.
"Everybody is bullish on gold, and everybody is looking at the signal central banks are sending. It's not just India or China, but most of the central banks, as well as funds, have changed their portfolios to include gold. So, everybody is looking at how much money they will invest in gold", said Dick Poon, Manager of Precious Metals at Heraeus in Hong Kong.
Gold rates have reportedly surged to new highs as many as five times in the last ten trading season, and three times in this week alone. IMF, late Wednesday, confirmed that it has sold 10 tons of gold to Sri Lanka, in addition to selling 202 tons to India and Mauritius. Other economies are soon expected to follow.