Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

Gold glitters at record high

goldrecordhigh.pngClick the chart to track the price of gold and other commodities. By Annalyn Censky, staff reporter


NEW YORK (CNNMoney.com) -- Gold surged to a new record high Tuesday, as uncertainties about the global economy sent some investors flocking to the save-haven precious metal.

Gold futures for December delivery, the most actively traded contract, rose $24.60, or 2%, to settle at a new record high of $1,271.70. That topped the previous record of $1,264.80 reached on June 21.

Gold is often seen as the ultimate low-risk asset because it is tangible and unlike currencies, it isn't tied to any one country's policies.

A number of global headlines were fueling the flight to safety on Tuesday, said Phil Flynn, senior market analyst with PFG Best.

Investors are concerned about how banks will phase in the new regulations announced in Basel, Switzerland, over the weekend, he said.

They're also using gold as a hedge against the dollar, which fell to a fresh 15-year low against the yen Tuesday, after Japan's Prime Minister Naoto Kan won re-election. Investors have been looking for the Japanese government to jump in to limit the currency's rise, as a stronger yen can hurt profits at Japan's export businesses. Kan has resisted pressure to do so.

Adding further fuel to the fire, Flynn called out reports showing declines in gold production from Russia -- among the top producers in the world.

"If you ask five people on the street why they're buying gold, five people could give you a different reason," Flynn said. "If you're worried about a weak dollar, you buy gold. If you're worried about bank failures, you're buying gold. If you're worried the global system is going to collapse, guess what? You buy gold."

Gold rose to record highs earlier this year as fears about Europe's sovereign debt crisis escalated, and in late 2009, gold had surged when investors fretted about a weak dollar and inflation fears.

But while gold prices hit a record on Tuesday, they were still a far cry from their real peak, as measured in dollars adjusted for inflation.

Gold hit its summit on Jan. 21, 1980, when it peaked at $825.50 an ounce, in 1980 dollars. That translates to an all-time peak of $2,163.62 an ounce in 2009 dollars.  To top of page

Overnight Avg Rate Latest Change Last Week
30 yr fixed4.06%4.04%
15 yr fixed3.20%3.19%
5/1 ARM3.31%3.31%
30 yr refi4.09%4.08%
15 yr refi3.25%3.21%
Rate data provided
by Bankrate.com
View rates in your area
 
Find personalized rates:
Index Last Change % Change
Dow 19,799.85 -27.40 -0.14%
Nasdaq 5,552.94 -2.39 -0.04%
S&P 500 2,265.20 -6.11 -0.27%
Treasuries 2.40 -0.06 -2.59%
Data as of 12:38am ET
Company Price Change % Change
Qualcomm Inc 54.88 -8.00 -12.72%
Bank of America Corp... 22.56 -0.08 -0.35%
General Electric Co 29.75 -0.78 -2.55%
Ford Motor Co 12.31 -0.05 -0.40%
Chesapeake Energy Co... 6.68 -0.01 -0.15%
Data as of Jan 23

Sections

President Trump could roll out new executive actions aimed at helping the coal industry. But experts don't believe Trump's regulation-busting will be enough to save a coal industry getting crushed by cheap natural gas. More

Donald Trump promised to call China out for being a 'currency manipulator' on day one. It didn't happen. CNNMoney explains what exactly that means and whether it is likely to happen later. More

The Obama administration set a new path for foreign entrepreneurs to stay in the U.S. -- but will the Trump administration take it away? More

The CFPB has fined CitiFinancial Servicing and CitiMortgage $28.8 million for giving 'the runaround' to cash-strapped homeowners who were trying to save their homes. More