Gold futures advanced to their highest point in nearly 28 years today, adding $4.10 to finish at $754.10 an ounce. The intraday high for the malleable metal hit $755, which is the highest level seen since the record intraday high of $875 set on January 21, 1980. The precious metal continued to garner strength from weakness in the dollar, which sank to another all-time low versus the euro. Gold also benefited from the belief that the worst of the credit crunch may be over and that further interest-rate cuts may be on the horizon. Other metals finished the day mixed.
Crude futures finished sharply lower as investors were trying to lock in gains. November-dated crude finished the day $1.42 lower at $80.24 per barrel. It seems that oil investors are taking their cue from the dollar, with oil prices weakening as the dollar firms. In addition, the push higher in crude prices continues to take into account potential future problems, and sometimes perception doesn't equal reality. Those perceived problems include supplies, the situation in Iran, and the weakening U.S. dollar.