Gold topped $600 an ounce today for the first time since 1980, and oil pushed toward $69 a barrel on rising tension over Iran's nuclear ambitions and supply disruptions.
Gold, considered a hedge against uncertainties during troubled times, has risen more than 16 per cent this year, about 41 per cent in the past 12 months, and 100 per cent in four years.
The metal has also been rallying due to rising oil prices. "The signals are still strong, people are still happy to buy in dips. Whilst we're below $600, the range is probably somewhere around $597.50 and $600. But if we break above $600, we're probably looking to test that $604.50 area," one dealer said.
Investors have turned to surging commodities markets for investment alternatives to equities, bonds and foreign exchange, where returns have not been as good.
Tensions in the Middle East over Iran's nuclear intentions, uncertainty about the dollar's outlook, worries about rising energy costs and speculation that central banks will diversify into metals have also boosted gold's appeal, dealers said.
US crude oil futures headed towards $69 a barrel today due to rising friction over Iran's nuclear programme and continuing supply disruptions in Nigeria.