Gold struck record new high for fourth consecutive day on Friday, 11 January, 2008. Prices struck $900/ounce mark earlier in the day but ended the day around $4 higher against previous close. Rally in gold continued to be spurred by comments from Federal Reserve Chairman, Ben Bernanke, who hinted at another interest rate cut and this sent the dollar tumbling down against the rival currencies. Silver prices too gained on Friday.
Gold generally moves in the opposite direction of the U.S. currency. Gold, as a dollar-denominated commodity, suffers from dollar strength.
Comex Gold for February delivery today rose $4.1 (0.5%) to close at $897.7 an ounce on the New York Mercantile Exchange. During intraday trading prices rose as high as $900.1/ounce. This year, prices have gained 7% till date.
Friday's closing price was the highest price after a record $873 that gold hit on 21 January, 1980.
Comex Silver futures for March delivery rose 9.5cents (0.6%) to $16.37 an ounce. Friday's closing price is an all time high price equaling the one reached on 7 November, 2007 (a twenty six year high price at $16.275). Silver has gained 9.4% in 2008. The metal had climbed 15.5% in FY 2007. The metal also has gained for seven straight years.
Gold witnessed the greatest annual gain in twenty eight years by gaining $200/ounce (31%) in FY 2007. In 2006, silver had jumped 46% while gold gained 23%.