World gold prices are again hitting new highs after a brief lull.
On 23 November in the morning, the price of gold on the forward market for the first time exceeded $1,160 per troy ounce.
Gold reached a record high on the GLOBEX electronic trading system, when prices for its futures (December) reached $1,166.6 per ounce.
The gold price grew as the dollar fell against its main trading partners. Since gold is priced in dollars, a weaker dollar makes the gold price more attractive for buyers who hold other currencies.
Demand for gold tends to rise at a time of economic uncertainly, although in 2009 gold sales have fallen while the price has been rising.
Gold is also being supported by a growing expectation that central banks around the world will move to increase their gold reserves.
India’s central bank bought 200 metric tonnes of gold from the International Monetary Fund earlier in November and the central bank of Mauritius bought a smaller amount last week.
Given the current momentum in the gold market, and the growing interest from big investment funds, analysts expect prices to continue rising. "We might have a bit of a pull-back, but the long-term trend is higher," Joe Foster, portfolio manager for the Van Eck Global International Investors Gold Fund, told CNN. Gold will probably top $1,200 some time in December and could climb to $1,300 early next year, Foster said.
Azerbaijan, which began exporting gold in July, can expect to receive surplus profits from gold production. Reza Vaziri, founder and president of RV Investment Group which operates Azerbaijan's Gadabay field, said earlier that Azerbaijan could export 40,000 ounces of gold by the end of the year and increase exports up to 60,000 ounces in 2010.