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The price of gold has risen above $1,300 an ounce for the first time.

The price of the precious metal reached $1,300.07 during trading at the London bullion market, before dipping back.

The latest rise has been spurred by caution over the global economy, as well as weakness in the US dollar – the currency used to value gold – which fell 1% against the euro.

The gold price has increased five-fold in the last 10 years, up from a low of $258 in 2000.

Gold PriceOne of the factors spurring investors is gold’s traditional role as a so-called “safe-haven” investment at times of economic uncertainty.

Another driver is more technical – gold is priced in dollars, and any fall in the dollar makes it cheaper to buyers using other currencies.

The World Gold Council’s last report on the gold market predicted that continuing strong demand from jewellery buyers in the two fast-developing markets of India and China would help to keep the price high.

© BBC 2010