ROMA LUCIW
Tuesday, January 08, 2008
Bullion sprinted to a record high just below the key $900 (U.S.) an ounce level Tuesday, with investors jumping into the gold rush as one report described the yellow metal as the new global currency.
Gold futures for February delivery rose to a record $884 an ounce on the Comex division of the New York Mercantile Exchange on Tuesday, surpassing a previous high of $875 set in 1980. It closed the session at $880.30, up $18.30.
Spot prices for the precious metal jumped more than $23 to $881.10 an ounce in London trading, topping last week's historic high of $869.05. (When adjusted for inflation, however, gold remains well below its all-time high. An ounce of gold at $875 in 1980 would be worth more than $2,000 today.)
John Ing, president of Maison Placements Canada Inc., expects bullion prices will hit a medium-term peak of $1,000 in 2008. “One catalyst will continue to be the decline of the U.S. dollar,” he said. “But the resumption of inflation will be what eventually sends gold to its new highs. That is something the market has not seen in more than 20 years.”
more:
http://www.globeinvestor.com/servlet/story/RTGAM.20080108.wgoldshines0108/GIStory/