March 13, 2008
NEW YORK (AP) — Gold futures hit $1,000 an ounce for the first time Thursday, pushed past the benchmark by the sinking dollar and record crude oil prices.
The dollar fell below 100 yen during Asian trading Thursday, its weakest level against the Japanese currency in 12 years. The dollar also dropped to all-time lows against the euro.
After reaching $1,001 on the New York Mercantile Exchange, gold for April delivery dropped slightly to $999.70 by midmorning Thursday.
The price still doesn’t match the all-time high of $850 in 1980, if that price is adjusted for inflation. An $850 ounce of gold then would be worth $2,177 in today’s dollars.
The $1,000 an ounce price, though, is still a milestone and a telling sign that investors are continuing to abandon the dollar.
Gold has been pushing up against the $1,000 an ounce mark for weeks, mainly because of the weaker dollar. Interest rate cuts — and the prospect of more on the way — have weakened the currency so much that foreign investors can buy dollar-based commodities like gold and oil more cheaply.
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This article was posted: Thursday, March 13, 2008 at 9:08 am