Gold futures climbed to a record for the third time this week as investors stepped up demand for a haven from financial turmoil.
Before today, gold gained 16% this year, outperforming stocks, bonds and many commodities as sovereign-debt concerns and an uneven economic recovery roil financial markets. Silver was little changed after approaching the highest price since 1980.
"Gold is accelerating," said Lind-Waldock Senior Market Strategist Adam Klopfenstein. "We're getting to a point where the public is getting spooked by the instability in financial markets. Gold is going to be the asset of choice when investors are seeking safe havens."
Gold futures for December delivery rose $4, or 0.3%, to $1,277.80/oz. at 11:45 a.m. on the Comex after touching a record $1,284.40.
Governments have spent trillions of dollars and reduced borrowing costs to record lows in a bid to revive the global economy. This week, the Bank of Japan sold the yen for the first time in six years because the currency's surge to a 15-year high against the dollar imperiled the nation's export-led recovery.
The Obama administration forecasts this year's deficit will widen to a record $1.47 trillion. The Federal Reserve has kept the benchmark lending rate from 0%–0.25% since December 2008 and is expected to resume direct purchases of Treasuries to boost the economy.
"All the debt and deficits are so high, the only perceived way out of this mess is a global synchronized devaluation of all fiat currencies," said Michael Pento, a vice president at Euro Pacific Capital Inc. in New York. "Gold is replacing the dollar as the world's reserve currency."
Gold for immediate delivery rose to a record $1,282.97. Goldman Sachs Group Inc. affirmed a forecast for the metal to reach $1,300 in six months.
Before today, gold gained 16% this year, outperforming stocks, bonds and many commodities as sovereign-debt concerns and an uneven economic recovery roil financial markets. Silver was little changed after approaching the highest price since 1980.
"Gold is accelerating," said Lind-Waldock Senior Market Strategist Adam Klopfenstein. "We're getting to a point where the public is getting spooked by the instability in financial markets. Gold is going to be the asset of choice when investors are seeking safe havens."
Gold futures for December delivery rose $4, or 0.3%, to $1,277.80/oz. at 11:45 a.m. on the Comex after touching a record $1,284.40.
Governments have spent trillions of dollars and reduced borrowing costs to record lows in a bid to revive the global economy. This week, the Bank of Japan sold the yen for the first time in six years because the currency's surge to a 15-year high against the dollar imperiled the nation's export-led recovery.
The Obama administration forecasts this year's deficit will widen to a record $1.47 trillion. The Federal Reserve has kept the benchmark lending rate from 0%–0.25% since December 2008 and is expected to resume direct purchases of Treasuries to boost the economy.
"All the debt and deficits are so high, the only perceived way out of this mess is a global synchronized devaluation of all fiat currencies," said Michael Pento, a vice president at Euro Pacific Capital Inc. in New York. "Gold is replacing the dollar as the world's reserve currency."
Gold for immediate delivery rose to a record $1,282.97. Goldman Sachs Group Inc. affirmed a forecast for the metal to reach $1,300 in six months.
