Gold hits $1,000 an ounce on recovery fears

Gold has broken though the $1,000 an ounce barrier for the first time in six months, as doubts grow about the strength of the global recovery.

Analysts believe some investors are using gold as a hedge against possible inflation as the global economy recovers. However, others are believed to be turning to gold as a safe-haven as they are less convinced of the strength of the recovery.

The metal has risen 13.6% in value this year, reaching an all-time record of $1,032 an ounce in March 2008.

It has now slipped through the $1,000 barrier again while no one was watching, says Adrian Ash, head of research at BullionVault.

He believes the lack of media attention this time around marks this run out from the two previous attempts.

Ash says: "There has also been only a quiet upturn in private investment as well, rather than the panic coin-buying of March 2008 and February 2009.

"Instead of surging on a tide of hot money, gold built a solid base over this summer, setting up what could now prove to be another strong autumn rally."

During the first week of September, daily website traffic and new account registrations doubled at BullionVault.com which offers investors access to physical gold ownership.