Gold Futures Hit Fresh Record


". . .highest price since gold futures started trading in the 1970s."

Gold futures soared to a fresh record on Friday as more investors jumped into bullion's bandwagon, ready to chase better returns and wary of riskier bets such as stocks.

Gold for August delivery rose $8.80, or 0.9%, to $1,257.40 an ounce. It earlier hit an intraday high of $1,260.90/oz..

"People are tired of their zero percent T-bills, afraid of the stock market, and afraid of the double-dip recession," said James Cordier, a portfolio manager at in Tampa, Fla. "People are pouring into gold even at this high level."

On Thursday, the August contract gained 1.5% to settle at $1,248.70/oz. on the Comex, the highest price since gold futures started trading in the 1970s.

Some investors waiting for a pullback that never came are now afraid to miss gold's run, even if it means buying at the crest, said Adam Klopfenstein, a senior market strategist at Lind-Waldock in Chicago.

"There's big money that wants to own gold," he said. No one feels economic problems across the Atlantic and in the U.S. are really solved, and are afraid of more credit concerns that "will show themselves in the future."

Silver for July delivery added 29 cents, or 1.5%, to $19.07/oz. A close around these levels would take silver to its highest price since mid-May.

July platinum added $2.10, or 0.15, to $1,574.10/oz.

Related Articles

Get Our Streetwise Reports Newsletter Free

A valid email address is required to subscribe