New York gold surged Thursday, hitting a one-month high. It was up by nearly 4 percent as the U.S. dollar faltered against the euro, oil soared to a new record high, and the Dow industrials plunged to its lowest level in nearly two years.
Gold closed up $32.80 at $915.10 an ounce. At one point, it reached a high of $916.50.
Silver followed, up 61 cents to $17.22 an ounce.
"Today’s move is a combination of dollar weakness, higher crude oil, and palpable stock market fear and weakness," said Amaury Conti, head trader at Austin, Calvert & Flavin, an investment management firm based in San Antonio, Texas.
"I would look for some follow-through above $930 in the next few days," Conti said. "If that holds, I think a retest of the previous highs is possible."
For market specifics that helped hedge gold as the safer haven for the day:
- Crude oil moved above $140 a barrel with the president of OPEC saying it could hit a record of $170 this year
- The Dow slid 360 points to a 21-month low
- And the Federal Reserve left interest rates unchanged yesterday, making the euro more attractive to investors than U.S. dollar
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