NEW YORK -- Gold futures surged to an all-time high above $875 an ounce Tuesday as traders bet that rebounding oil prices would boost demand for the metal as a safe haven investment.
An ounce of gold for February delivery climbed as high as $879.40 an ounce on the New York Mercantile Exchange, easily breaking its previous record of $875 set in 1980. Prices later retreated to $877.20, up $15.20 in morning trading.
Spot gold also rose to a fresh high, hitting $876 an ounce to beat the high of $869.05 it hit last week.
Gold has soared during the past year, boosted by rising prices for oil and other commodities also by the falling dollar. Those trends have increased the metal's appeal as a hedge against inflation; gold is also seen as a safe investment in times of political uncertainty around the world.
Still, when adjusted for inflation, gold remains well below its all-time high. An ounce of gold at $875 in 1980 would be worth $2,115 to $2,200 today.
(Copyright 2008 by The Associated Press. All Rights Reserved.)
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