LONDON, Jan 25: The price of gold broke through $650 per ounce on Thursday to hit the highest level since last August, rising in line with other metals on the back of higher crude oil prices, analysts said.

Gold prices hit as high as $653.50 on the London Bullion Market, reaching a level which was last witnessed on August 10, 2006.

The precious metal is benefiting from higher oil prices, which increase the risk of inflation. That increases the attractiveness of gold as a defence against the erosion of the value of money.

Gold price gains have also been underscored by strength across the base metals complex, with nickel striking an all-time record on Thursday thanks to low global stocks.

A ton of nickel for delivery in three months climbed to $38,798 on the London Metal Exchange. It was the highest reading for nickel since the start of its quotation on the LME in 1979.—AFP