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 $12.40, or 1%, to $1,260.70 U.S. an ounce. It hit an intraday high of $1,262 an ounce earlier.
"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 OptionSellers.com 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 an ounce on the Comex division of the New York Mercantile Exchange, the highest price since gold futures started trading in the 1970s.
On the week, gold has gained 2.5%. So far this month, prices are 3.7% higher and on track to post its third straight month of gains following May's 2.9% and April's 5.9% advances, according to FactSet Research.
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."
Stocks opened modestly higher on Friday, but seesawed during the session before finding a firmer footing.
The dollar index, which compares the U.S. unit against a basket of six currencies, was modestly higher at 85.74.
As an indication of rising investor interest in gold, holdings at SPDR Gold Trust rose to a fresh record on Thursday, the latest day for which statistics are available.
The fund, the largest exchange-traded fund backed by gold, reported holdings of 1,307.96 metric tons of gold.
Oil and other commodities such as copper were trading lower on Friday. Most metals, however, tracked gold's rise.
Silver for July delivery added 43 cents, or 2.3%, to $19.20 U.S. an ounce. A close around these levels would take silver to its highest price since mid-May.
July platinum added $10.50, or 0.7%, to $1,582.50 an ounce.
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