LONDON, Jan 29: Gold prices hit a record high $933.33 here on Tuesday as the market was driven higher by production problems in key producer South Africa and the weak US dollar.

Platinum also hit a peak of $1,738.75 an ounce on Tuesday, while silver reached a 28-year high of $16.83.

In recent days, power shortages in South Africa, the world’s biggest gold producer, have paralysed mining activity, putting even more pressure on gold prices as the dollar weakened.

The weak greenback encourages demand for dollar-priced commodities because it makes them cheaper for buyers using stronger currencies.

“Ongoing power outages in South Africa coupled with dollar weakness have triggered further investor and speculative related buying in the precious metal over the past 24-hours, with gold and platinum rising to fresh all-time highs, while silver has traded to its highest since 1980,” said analyst James Moore at TheBullionDesk.com.

Precious metals are also in demand by investors seeking a safe haven for their cash amid extremely volatile stock markets.—AFP