Gold prices hit a 7-month high Tuesday as oil tumbled along with U.S. stocks as economic concerns drove investors to safe-haven purchases. New York silver, gold and platinum futures gained 2.8 percent, 2.7 percent and 3.5 percent.
March crude-oil plummeted $2.58, or 6.9 percent, to close at $34.93 a barrel. The average price for regular unleaded gasoline fell one-half cent to $1.96 a gallon, according to AAA.
March silver rose 38.5 cents to close to $14.01 an ounce.
April platinum surged $37.30 to $1,098.30 an ounce
Gold for February climbed $25.50 to end at $967.00 an ounce.
"Gold is rallying against all currencies," Frank McGhee, the head dealer at Integrated Brokerage Services LLC in Chicago, was quoted on Bloomberg.com. "Up the road, you’re looking at governments devaluing their currencies to pay for the financial crisis. It’s the ultimate flight to safety for gold."
"I think $1,000 is pretty much almost in the cards here just given how strong the trend has been," Brian Hicks, co-manager of the U.S. Global Investors Global Resources Fund, said on MarketWatch.
Gold, considered a hedge during times of high inflation and economic uncertainty, tends to follow oil and move opposite to the U.S. dollar. A rising greenback makes dollar-denominated commodities, like bullion, more expensive for holders of other world currencies.
In spot trading, the London afternoon gold-fixing price — a benchmark for gold traded directly between big institutions — stood at $968.00 an ounce. London silver and platinum were at $13.90 and $1,083.00, respectively.