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The pound fell 1.6% yesterday against the dollar to below $1.50, making a fall of 7% since the start of the year.
The weak pound is good news for the gold price in sterling which hit a record high of 753.69 pounds an ounce.
The pound appears to have a 10 month low due to fears the General Election, scheduled for later in the year, will result in a hung parliament. This is when no party has an overall majority of seats. International investors in turn, would be uncertain how the large UK budget deficit would be resolved and they could play safe and move to another currency.
With the ongoing political uncertainties surrounding the forthcoming General Election, analysts suggest that the sterling gold price could continue to rise making now an opportune time to buy gold. |