Gold Jumps on Renewed Inflation Concerns

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As stocks turned around, gold also got a boost to reach a new record of $945.80 an ounce.

US stocks reversed course Wednesday, making a 240+ points swing from down 154 points to close the session up 90 points.

As stocks turned around, gold also got a boost to reach a new record of $945.80 an ounce. The precious metal rallied after a government report showed that inflation picked up steam in January with CPI rising 0.40% and core CPI 0.30% - both exceeding expectations.

Year-to-date, bullion has gained more than $100. Gold based exchange-traded funds (ETFs) are the bright spots in a disappointing market so far. Among gold ETFs, streetTRACKS Gold Shares (GLD) has returned 13.07% in 2008 and iShares COMEX Gold Trust (IAU) gained 11.16%.

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