LONDON, Dec. 7 (UPI) -- Gold opened in London up $5.20 to $512.20 per ounce Wednesday on central bank purchases of the commodity as its upward movement appears unstoppable.
"In the past month, Russia, Argentina and South Africa decided to increase the amount of gold in their reserves, and Japan is likely to follow suit," said gold analyst Addison Wiggin.
He said worries over incipient U.S. inflation plus strong retail demand from Asia is driving the current bull market in gold, now at levels not seen since April 1981.
Legendary investor Jim Rogers said under-exploration and U.S. dollar weakness would continue to underpin precious metal and commodity prices, Miningmx.com reported.
Moreover, a special incentive for U.S. companies to bring their money back home expires this year "so you will see the dollar resume its decline," Rogers said.
"The dollar is fundamentally flawed, and it's going to be a serious problem in the next five or 10 years. However, that's not the main reason commodities will be going up. The main reason is supply and demand are out of whack, but a weak currency like the dollar is going to help commodities."