Gold prices have hit an all-time high of $2,450 per ounce, as global central banks accelerate their purchases of the precious metal amid geopolitical uncertainty and a desire to diversify away from the US dollar.

The rally has been particularly strong in London's bullion markets, where trading volumes have reached record levels. Analysts say the combination of persistent inflation concerns and a softening dollar is creating a 'perfect environment' for safe-haven assets.

"We are seeing a structural shift in how central banks manage their reserves," said a commodities strategist at a major investment bank. "Gold is no longer just a hedge; it's becoming a core strategic asset again."

The surge has also boosted the share prices of major mining firms, though explorers have warned that new discoveries are becoming increasingly difficult and expensive to bring to market. Retail demand for gold coins and bars also remains exceptionally high.