Gold Prices Pass a Record $1,380-an-Ounce on Inflation Fears

goldGold futures surpassed a record price of $1,380 an ounce Thursday on investor fears that the Federal Government's new $600 billion stimulus package may spur inflation and devalue the U.S. dollar.

Gold futures for December rose 3.4% to $1,383.20 an ounce at about 2:40 p.m. Eastern time Thursday after touching an intraday high of $1,384.30. Silver futures for December were up more than 6% Thursday to $25.97 an ounce.

Precious metal prices have been rising all year as investors look for a safe haven amid fears of currency volatility. Gold is perceived as a safe investment as countries look to boost their economies by using monetary policy to increase liquidity and cut borrowing costs.

Gold and silver received a further boost after the U.S. Federal Reserve on Wednesday launched the second phase of its quantitative easing program, the so-called QE2. The Fed will buy up to $600 billion more in long-term U.S. Treasury bonds in an effort to stimulate a U.S. economy that many say is growing too slowly.

Read Full Story

Markets

DJIA 23,675.64 82.66 0.35%
NASDAQ 6,783.91 30.18 0.45%
NIKKEI 225 20,987.92 -127.53 -0.60%
HANG SENG 25,865.39 51.14 0.20%
DAX 10,810.96 70.07 0.65%
USD (per EUR) 1.14 0.00 0.25%
JPY (per USD) 112.33 -0.19 -0.17%
GBP (per USD) 1.26 0.00 -0.25%
USD (per CHF) 0.99 0.00 0.04%