"Tensions in the Middle East and North Africa are not solved yet. Secondly, there are new uncertainties in the eurozone. These all will benefit gold," Ronald Leung, of Lee Cheong Gold Dealers in Hong Kong, said.The weaker dollar was partly responsible for the rise in gold. Since the price is deonominated in dollars, if the dollar falls the price becomes relatively cheaper to investors holding other currencies. Minutes from the Federal Reserve's interest rate deliberations last month pushed the dollar down further on Tuesday as it became clear that there was unlikely to be an interest rate hike any time soon.
Bidders for the precious metal were offering $1,458.80 per ounce on Wednesday morning. Silver also strengthened to a new 31-year high of $39.48. Gold prices have also been boosted by traders looking for a hedge against inflation.
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