Gold sparkles to more than $1,000 an ounce

Gold hurdles $1,000 an ounce

Gold surpassed $1,000 an ounce in today's gold market for the first time in almost a year as investors, hurt by plunging stocks and a deepening recession, sought to protect their wealth. Gold futures for April delivery rose $25.70, or 2.6 percent, to $1,002.20 on the New York Mercantile Exchange's Comex division. Earlier the price touched $1,007.70, the highest since March 18.

Gold, the only metal to advance in 2008, has rallied annually since 2000 and is up 13 percent this year. Stocks and bonds have trailed gold this year.

"This is a perfect storm for gold and its flight-to- quality characteristic is coming through." Gold last topped $1,000 in March as interest-rate cuts by the Federal Reserve propelled the dollar to an all-time low against the euro in July. The metal reached a record $1,033.90 on March 17 before retreating to as low as $681 by October. "The financial situation remains extremely fragile and gold seems to be the only safe haven," quoted a market analyst.

"Currencies are losing value and holders of currencies are losing confidence. Gold may break through $1,000 and not look back." Gold's all-time inflation adjusted record is $2,224 an ounce on Jan. 21, 1980. "From an inflation-weighted basis, gold is still pretty cheap," lamented another.

"The price slide of U.S. equities, with the Dow Jones Industrial Average falling to its lowest level since October 2002, should result in a continued positive mood of investors on gold," according to an analyst at Commerzbank. "There is a risk here of a panic sell-off in stock markets, and the next leg down in the stock bear market looks imminent, as the ills of the global financial system virulently infect the global economy,"