Gold Price Surges as Investors Flee to Safe Haven

The gold price has surged again after a near-six-month hiatus, and this time it's not necessarily a sign of good things to come.

The price peaked above $US5300 an ounce just before the start of the war in the Middle East at the end of February but then fell below $US4000 an ounce last month before rising again to trade above $4400 an ounce this week.

This 8% increase has been driven by a number of factors, including the US Federal Reserve Board's decision to leave its policy rate unchanged and concerns that America's finances might corrupt its monetary policies.

The gold market is seen as a safe haven for investors who fear inflation or economic instability, and the recent surge in the price may be a sign that these fears are growing.