As the economy worsens, investors have been fleeing stocks for the more traditionally safe investments of government bonds and gold. The belief is that gold has more potential to advance than other investments. The dollar weakened against the euro and the British pound, which further strengthened gold prices.
Gold for February delivery rose $9.80 to settle at $847.20 an ounce on the New York Mercantile Exchange.
Other precious metals prices also rose slightly. March silver gained 1 penny to $10.86 an ounce, while March copper futures added 1.9 cents to $1.3455 a pound.