Gold futures spiked to a new record of $1,009 an ounce in New York on Friday, as investors turned to the safe haven after news of a bailout from troubled investment bank Bear Stearns while the plunging demand increased demand for the precious metal.
Gold for April delivery gained $5.70 to close at $999.50 an ounce on the Comex division on the New York Mercantile Exchange. The price reached the highest ever for a most-active contract at 10:45 a.m., topping yesterday's record of $1,001.50.
Gold posted a weekly gain of $25.30 from last Friday's closing level of $974.20 an ounce.
Bear Stearns received emergency funding from JPMorgan Chase & Co. and the New York Federal Reserve. The securities company reported that its cash position had significantly deteriorated.''
In currency markets, the dollar dropped to a record against the euro and a 12-year low against the yen. Gold has gained 19 percent this year, while the Standard & Poor's 500 Index fell 13 percent.