Gold soars above $1,900

Gold soared above $1,900 for the first time overnight as investors continue to flock to the precious metal amid ongoing turmoil in financial markets.

The precious metal has increased in price sharply since the start of the year, climbing from a low of $1,318 in January by over 40%. This morning, having hit a peak of $1,911 last night, it was trading at $1,907.

The latest surge higher came ahead of the expectation the US Federal Reserve will announce further stimulus for the US economy.

Investors are eyeing up further intervention from the Fed and expect its chairman, Ben Bernanke, to discuss additional measures to support flagging US growth when he gives a speech on Friday.

If the US does follow up his speech with further QE, it will impact the dollar, causing investors to seek other safe havens.

Gold climbed despite gains for equities, with US and Asian markets making gains overnight.

The Dow closed up marginally, ahead 37 points or 0.3%, at 10,855, while the S&P 500 was up 0.29 points, or 0.03%, at 1,124.

The Nikkei finished up 1.2% or 103 points, at 8,731.