Gold Price Hits Record of $1,308.90Gold prices reached a record $1,308.90 an ounce Tuesday after earlier price declines and continued low interest rates spurred investors to buy bullion, Bloomberg News reported.

Gold prices, which earlier had their biggest intraday decrease in more than two months, reached a record high for the eighth time in two weeks, according to the wire service. Gold futures rose 0.6% to $1,306.10 an ounce earlier today and are up about 19% this year, Bloomberg reported.

Investors responded to the earlier price decline and interest rates that remain near record lows by buying more gold.

Earlier this month, consulting firm GFMS Ltd. put out an industry report saying that gold would likely surpass the $1,300-an-ounce mark, Reuters reported. While the U.S. has avoided the sort of sovereign debt crisis that has impacted other nations, that may change, potentially causing devaluation of the dollar, Reuters said, citing GFMS Chairman Philip Klapwijk.

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Robert & Lisa

I don't want our country to fail, but it is headed that way.

September 29 2010 at 4:33 AM Report abuse rate up rate down Reply
Robert & Lisa

Next stop $2,000 or will it stop there?

September 29 2010 at 4:32 AM Report abuse +2 rate up rate down Reply

I think most investors realize that the latest gains in the stock market are contrived; they are a result of intervention(QE Lite)by the Fed. The Fed also intervenes to keep the price of gold from rising too fast and too far. Without Fed intevention the stock market would be at rock bottom and the price of gold would be sky high.

September 29 2010 at 3:41 AM Report abuse +1 rate up rate down Reply

This does not show confidence in the Obama administration....

September 28 2010 at 5:01 PM Report abuse +5 rate up rate down Reply