By SPA
Washington : Gold futures rose briefly above $900 an ounce (28.35 grams) for the first time as high oil prices, a weak U.S. dollar, and fears of a U.S. recession led nervous investors to continue to buy the precious metal.
One ounce of gold for February delivery on the New York Mercantile Exchange jumped $6.50 to $900.10 in yesterday morning trading, a record high and a psychologically important milestone. Gold later fell to just below $899 on ounce on profit-taking but remained in record territory.
However, when adjusted for inflation, gold remains well below its record high. An ounce of gold at $875 in 1980 would be worth nearly $2,200 today.
Gold has soared over the past year, rising almost 32 percent, boosted by a falling dollar, rising prices for oil and other commodities, and increased Middle East instability. Such trends have lifted the metal’s appeal, as gold is seen as a safe investment in times of political and economic uncertainty.