Gold surges on economic uncertainty

Demand for the precious metal spikes as investors seek shelter from volatility.

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Gold: A shiny investment
This glittery commodity may be a good way to diversify your portfolio as prices hit new highs.

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.  To top of page

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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.