Gold surges on economic uncertainty

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NEW YORK -- Gold prices surged Friday as dollar weakness and a brutal selloff on Wall Street sent investors in search of a safe haven.

Gold for April delivery settled at $975 an ounce in New York after touching a record trading high of $978.50 at one point during the session. Meanwhile, the U.S. dollar sank to a fresh low against the euro, then regained some ground later in the day.

A number of weak economic reports released earlier this week, along with news of further writedowns by companies with ties to toxic mortgage-backed investments, helped spur demand for the precious metal, according to Jon Nadler, a senior analyst at Kitco Bullion Dealers in Montreal.

Nadler says it is "not inconceivable" to see gold prices reach $1,000 an ounce before the Federal Reserve meets on March 18, depending on what sort of economic data is released between now and then.

The gold market "feeds on uncertainty and anxiety," Nadler said. "The continuing debacles are fueling this kind of appetite for alternatives."

Sill, the current highs are nowhere near their heights hit in 1980, he added, when gold prices reached an all-time high of $825.50, on Jan. 21, 1980, which is roughly $2,224.03 when adjusted for inflation.