Gold hits $1,200 an ounce

Precious metal settles slightly below that mark, continuing its rise on dollar weakness after Dubai debt fears ease.

EMAIL  |   PRINT  |   SHARE  |   RSS
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all RSS FEEDS (close)
By Julianne Pepitone, staff reporter

Click the chart to view other commodity prices.
Elko, Nevada: Good as gold
The small Nevada town has been able to dodge the recession. What's the secret of its success? Gold - and lots of it.
What should the Obama administration do to cut down on foreclosures?
  • Pressure banks to modify more loans
  • Let the industry take care of itself
  • Use government funds to aid homeowners

NEW YORK ( -- Gold prices crossed $1,200 an ounce Tuesday and closed at a record high as dollar weakness and easing of Dubai debt fears pushed the precious metal higher.

U.S. gold futures for December delivery reached an intraday high of $1,202.70 an ounce before backing off and settling up $18 to $1,119.10.

"Concerns about geopolitical events have been pushing investors to seek safe-haven assets," said Carlos Sanchez, analyst at CPM Group. "Gold is seen as a hedge against that volatility."

Gold prices had fallen about 5% Friday on continued concerns about the state-run investment company of Dubai requesting a postponement of $60 billion in debt.

But on Tuesday, reports said Dubai World was in talks over $26 billion of its debt, easing worries it would default on the total balance. That relief translated into a blow for the dollar, as increased risk appetite pushed the U.S. currency lower.

A weaker greenback tends to boost gold, as it and other commodities are priced in dollars around the world.

The dollar also pared gains against the yen after the Bank of Japan said it will inject more liquidity into the financial system while holding rates at 0.1%.

The dollar's recent weakness has provided enough of a floor under gold prices that investors continue to buy the metal despite its high prices, said Sanchez.

But prices will likely cool soon and trade in a tight range before moving higher than $1,200, he added, noting that it took about one week for gold to move from $1,100 to $1,160 an ounce.

"I think a lot of market participants who are more short-term oriented are looking for specific levels, like $1,200," Sanchez said. "Prices could consolidate around current levels for a while, but we'll [end above] that threshold by the end of the year."

November 2009 was a golden month. Gold prices have risen more than 34% in 2009 so far. The metal was $890 an ounce on Jan. 2, and it fell to $818.90 on Jan. 15.

The next month saw a rapid rise, and gold prices closed at $1,004.70 per ounce by Feb. 23. But prices sank to $878.90 on April 7 and did not cross the $1,000 level again until Sept. 14.

Gold prices have marched upward since that time, despite brief dips in September and October. Since the start of November, prices have risen steadily. To top of page

They're hiring!These Fortune 100 employers have at least 350 openings each. What are they looking for in a new hire? More
If the Fortune 500 were a country...It would be the world's second-biggest economy. See how big companies' sales stack up against GDP over the past decade. More
Sponsored By:
More Galleries
10 of the most luxurious airline amenity kits When it comes to in-flight pampering, the amenity kits offered by these 10 airlines are the ultimate in luxury More
7 startups that want to improve your mental health From a text therapy platform to apps that push you reminders to breathe, these self-care startups offer help on a daily basis or in times of need. More
5 radical technologies that will change how you get to work From Uber's flying cars to the Hyperloop, these are some of the neatest transportation concepts in the works today. More
Worry about the hackers you don't know 
Crime syndicates and government organizations pose a much greater cyber threat than renegade hacker groups like Anonymous. Play
GE CEO: Bringing jobs back to the U.S. 
Jeff Immelt says the U.S. is a cost competitive market for advanced manufacturing and that GE is bringing jobs back from Mexico. Play
Hamster wheel and wedgie-powered transit 
Red Bull Creation challenges hackers and engineers to invent new modes of transportation. Play

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.