Gold futures soared to an all-time record above $880 an ounce Tuesday as rebounding oil prices added to the metal's allure as a safe haven...
NEW YORK — Gold futures soared to an all-time record above $880 an ounce Tuesday as rebounding oil prices added to the metal’s allure as a safe haven against inflation.
Other commodities also traded higher on inflation worries, and speculation that a weak dollar will make U.S. exports more attractive.
An ounce of gold for February delivery climbed as high as $884 an ounce on the New York Mercantile Exchange, topping by almost $10 its previous record of $875 set in 1980. It later settled at $878, up $18.40.
When adjusted for inflation, however, gold remains far short of its all-time high. An ounce of gold at $875 in 1980 would be worth $2,115 to $2,200 today.
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Rising prices for oil and other commodities, combined with a weaker U.S. dollar, have boosted the price of gold. Those factors have increased the metal’s allure as a hedge against inflation; gold is also seen as a safe investment against political and economic uncertainty.
Light, sweet crude for February delivery advanced $1.24 to settle at $96.33 a barrel Tuesday on the New York Mercantile Exchange.
The dollar dipped against the euro. The 15-nation currency was worth $1.4710 in late New York trading, up from $1.4696 Monday.
A cheap dollar can make commodities more attractive as an alternative investment, and can also raise demand from foreign buyers as their currencies gain strength.