Amid increasing concerns about the global economy, gold set another record price today, Bloomberg reports. This morning’s COMEX index saw gold open at $1,854 before reaching a high of $1,880.90. It was the longest run of weekly gains since April 2007.
“Gold is the currency of the world at the moment, with the world convinced that the monetary and fiscal authorities are likely to do nothing right and everything wrong when it comes to resolving the world’s current fiscal problems,” said economist Dennis Gartman.
Job numbers and home sales in the US fell, as did stock markets across Europe and Asia, while concerns rose about sovereign debt crises.
Gold has risen 31% in 2011, its 11th year of a bull market that’s the longest since at least 1920.
“Medium term, the disorder of the global monetary system and long-term inflation threat will amplify gold’s nature as a currency and an inflation hedge,” said China International Capital Corp analyst Cai Hongyu.
A Bloomberg survey suggested gold will continue its ascent next week. But the metal has yet to reach its inflation-adjusted price of $2,300, set during the panic buying of 1980.
by Greg Klein