Gold prices reached their highest level in 18 years today, fueled by escalating inflation fears in major economies. Spot gold rose to $456.75 an ounce in early trading, a level not seen since 1987, before settling slightly lower at $454.25. Analysts attribute the surge to investors seeking refuge from potential inflationary pressures and a weakening dollar.

“Gold is benefiting from its traditional role as an inflation hedge,” said John Smith, a precious metals analyst at Global Investments. “With rising energy prices and concerns about interest rate hikes, investors are looking for safe-haven assets.”

The weakening dollar also contributed to gold’s appeal, as a weaker dollar makes gold cheaper for investors holding other currencies. Other precious metals, including silver and platinum, also experienced price increases, mirroring gold’s upward trajectory. Market watchers predict continued volatility in the gold market as economic indicators fluctuate and inflation concerns persist.

Some experts caution that gold’s current price levels may not be sustainable in the long term, suggesting a possible correction in the future. However, for the time being, gold remains a favored investment choice for those seeking to mitigate risks associated with inflation and currency fluctuations.