The price of gold surged to a 25-year high of $604 an ounce on Tuesday, while Brent crude oil jumped to above $69 a barrel.

Geopolitical tensions in the Middle East, worries over the dollar, and inflation concerns have seen investors pouring money into precious metals, Business Report noted on Wednesday.

With the oil price heading towards $70 a barrel on tensions between Iran and the US, analysts believed gold would end the year around the $650/oz level.

Spurred on by the gold rally, the local stock exchange surged to a new closing record of 20 865.34 on Tuesday, while the rand remained firm around the R6.11/$ level.

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