HONG KONG, May 12: Hong Kong gold prices closed at 26-year highs Friday at US$722.10-722.60 an ounce, up from Thursday’s close of $708.20-708.70.

The market opened at $716.20-716.70. Overnight, gold hit a high of $726.70, a level last reached in January 1980.

The precious metal has rocketed by almost 40 per cent since the start of 2006 along with others such as silver and platinum which are supported by a weak US dollar, tensions over Iran and inflation fears prompted by high oil prices.

A weak US currency makes commodities priced in the US unit on world markets more attractive to buyers using other currencies.

Investors seek refuge in precious metals — particularly gold — that are seen as a safe store of value in times of higher inflation and geopolitical uncertainty.—AFP