Antsy investors flock to a warm place

NEW YORK (CNNMoney.com) -- Investors have bid up the price of bonds and gold in recent weeks as growing concerns about the economy have fueled demand for safe-haven investments.

On Friday, even as gold eased off its recent charge, Treasury prices jumped after the Labor Department reported that unemployment was much higher than expected and renewed fears that the economy is headed for a recession.

The report startled equity investors, and all three major stock market gauges opened - and closed - lower.

Investors see Treasurys as an attractive investment in times of economic uncertainty because they carry U.S. government backing.

The benchmark 10-year Treasury note gained 5/32, to yield 3.87 percent, down from 3.90 percent late Thursday. Prices and yields move in opposite directions.

The 2-year note gained 4/32 to yield 2.74, and the 5-year bond gained 9/32 to yield 3.19 percent. The price on the 30-year note lost 7/32 to 110 7/32 with a yield of 4.37 percent from 4.36 Thursday.

Meanwhile, gold prices have been on a record run as the U.S. dollar has softened against other currencies, making the precious metal more attractive to foreign buyers.

Gold futures are seen as a store of value, which means investors looking for a hedge against volatility in the stock market flock to the gold market when equities fall.

Gold prices reached a record trading high Wednesday of $868.60 an ounce on the New York Mercantile Exchange; the previous high was $850 an ounce.

Despite the gloomy jobs data, which would ordinarily spur demand, gold traded lower Friday as investors sold off to lock in profits.

In afternoon trading Friday, gold prices fell $3.40 to $865.70 an ounce.