The following chart provides a update on the current 24h spot price of gold. Chart and commentary to follow ~

Courtesy of Thompson Financial:

LONDON - Gold hit a fresh all-time high above 875 usd in early London trade as a rebound in oil prices and further dollar weakness sparked a fresh round of buying.

"Currencies and oil are the main drivers behind this at the moment," said Commerzbank analyst Rory McVeigh. "When stops were taken out at 870 usd we saw a real rush of buying. It's held above 870 usd so we should see it consolidate now until the Americans come in later today."

At 10.03 am, spot gold was up at 872.90 usd an ounce against 859.30 usd in late New York trades yesterday, having earlier hit a fresh all-time high of 875.80 usd.

Gold has risen by over 200 usd since the onset of the credit crunch in mid-August last year, as a trinity of factors have collided propelling it to a series of record highs.

The weak US dollar and a skyrocketing oil price have boosted the precious metal as market players look for an alternative to the most common source of cash reserves and a hedge against inflationary pressures, while the economic uncertainty emanating from the subprime debacle has seen gold reassert itself as a store of wealth in times of turmoil.

Oil prices have rebounded towards 96 usd today after retreating from the 100 usd mark on profit taking and economic slowdown fears over the previous two sessions.

The dollar has slipped throughout the morning as market players weigh the possibility of further interest rate cuts from the US Federal Reserve at the upcoming meeting on January 30.

Additional buying motivation today is coming from the start of gold future contract trading within China tomorrow, with some market players positioning ahead of the launch.

"There may be some buying ahead of these futures going live overnight," said JP Morgan analyst Michael Jansen, adding that he expects gold to trade in a range between 800 usd and 950 usd an ounce in Q1 08.

In other precious metals, silver tracked gold higher up at 15.42 usd against 15.18 usd in late New York trades yesterday.

Hochschild Mining today said it maintains its stance on both the silver and gold price. "We remain positive on the fundamentals for silver and gold given continued US dollar weakness, heightened geopolitical tensions, depleted above ground stocks and increasing investment demand," the company said in its Q4 07 production results. "In addition to macroeconomic drivers, we believe strong industrial demand for silver will continue in 2008 and will reflect positively on its price."

Elsewhere, platinum was rising once more at 1,538 usd per ounce against 1,525 usd in late trades yesterday, after a period of consolidation since the metal hit a historic high of 1,553.50 usd an ounce last week. Its sister metal palladium held steady at 370 usd per ounce.