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Crude oil figures cruise toward record as gold chases $1000 an ounce.
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NEW YORK (CNNMoney.com) -- Gold prices retreated Tuesday afternoon, after reaching an all-time high last week, as investors locked in profits and showed signs of trepidation ahead of the psychologically important $1,000-an-ounce level.
Around midday, gold for April delivery slipped $17.60 to $966.60 an ounce in New York. Gold prices have surged nearly 20% this year as volatility in equity markets has spurred demand for safer investments like precious metals.
"A lot of new players have come in [and] the environment in the gold market has changed," said Peter Spina, President of Gold Seek LLC.
Reason for Selloff Spina attributed Tuesday's selloff to investor caution, with many opting to take money off the table amid concerns that gold will continue sliding away from $1,000 an ounce.
Investors do not want to buy before that level is reached, Spina said.
However, Spina points out that the gold market is "very unstable," which means prices could easily surge past $1,000 an ounce, or they could retreat further.
The two main factors behind gold's stellar gains are the erosion of the U.S. dollar and signs that inflation is increasing, Spina said.
The greenback has hit successive lows in recent weeks as concerns over the health of the U.S. economy have become pervasive. Meanwhile, oil prices have hit record highs on a combination of supply concerns and speculative buying.
Given these factors, gold's reputation as a safe-haven investment, one that stores value in times of economic instability, has attracted the attention of many investors.