Gold prices traded in record territory again Thursday as inflation-wary investors bid prices up near $1,300 an ounce.
Gold prices gained $4.20 to settle at a record $1,296.30 an ounce, building on gains it made after the Federal Reserve announced Tuesday it might take further steps to stimulate the economy. Investors buy gold when they want to protect themselves against inflation, and it appears the Fed’s statement stoked fears that the dollar’s value will continue to fall.
If gold passes $1,300 an ounce, it will likely stay above that level for some time, said CPM Group analyst Carlos Sanchez.
“It’s seen technically as a resistance level,” Sanchez said. If gold breaks through that barrier, investors will feel confident enough to bid it even higher.
Gold prices have nearly doubled since 2008. The Associated Press
