Gold prices heads for ’70s-style rally

Gold prices, already near a 16-year high, may be headed for the longest rally since Richard Nixon was US President as a falling dollar and renewed concern about inflation boost bullion’s appeal as an investment.

The precious metal has climbed since 2001 to about $442 an ounce as US budget and trade deficits widened to records under President George W Bush.

Gold last rose five straight years from 1970 to 1974, when inflation peaked at an annual rate of 12%, five times the current pace.