Gold struck a new all-time peak above US$866 on Thursday and is set to continue its meteoric rise. What are the main reasons for this increase?

Supply and demand: Gold, like other commodities, is driven by supply and demand. However, as almost all the gold ever produced still exists, hoarding plays a far greater role in the price determination than is the case with other commodities. Central banks hold a fifth of all this gold in reserve and any change in their inventories would have a big effect on the price.

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