Gold futures fluctuated after rising to a record on demand for a hedge against currencies amid Europe’s debt crisis.
The metal reached an all-time high of $1,249.70 U.S. an ounce in New York before retreating as much as 0.9%. Some investors sold to cover losses in other markets as the euro plunged against the dollar and equities tumbled worldwide.
Gold futures for June delivery rose $1.70 to $1,230.90 U.S. at 12:40 p.m. on the Comex in New York. Gold for immediate delivery reached an all-time high of $1,249.40 U.S.
Futures are headed for the fourth straight weekly gain. The euro fell to the lowest level since November 2008 against the dollar on speculation that the 16-nation currency may break up. Yesterday, former Federal Reserve Chairman Paul Volcker said the euro faces "disintegration."
Gold priced in euros climbed to a record today on concern that cost-cutting measures by European nations will undermine economic growth and devalue the currency.
Stocks in Asia, Europe and the U.S. tumbled. Industrial metals and energy and agriculture commodities fell.
Silver futures for July delivery declined 30.9 cents, or 1.6%, to $19.19 U.S. an ounce on the Comex.
Platinum futures for July delivery fell $21.50, or 1.2%, to $1,717.90 U.S. an ounce on the New York Mercantile Exchange. Palladium futures for June delivery dropped $17.50, or 3.2%, to $525.80 U.S. an ounce.
