Price of Gold Rises To an 18-Year High
This article is from the archive of The New York Sun before the launch of its new website in 2022. The Sun has neither altered nor updated such articles but will seek to correct any errors, mis-categorizations or other problems introduced during transfer.
Gold in New York rose to the highest in almost 18 years as investors bought bullion to hedge against inflation and jewelers stocked up to meet rising demand.
Gold may reach $500 an ounce in the next three months, UBS AG said yesterday in a report, boosting its price forecast from $455. Hedge-fund managers and other large speculators increased their net-long position in New York futures by 5% in the week ended November 15, the first gain in five weeks. Gold has rallied 12% this year and is headed for its fifth straight annual gain.
“There’s pressure to run gold up to $500,” a trader at FIC Commodities, Domenick Nardo, said. “We’ve got some of the last people jumping on the bandwagon.”
Gold for December delivery rose $3.30, or 0.7%, to $489.50 an ounce on the Comex division of the New York Mercantile Exchange. Prices earlier reached $490.50, the highest since December 1987.
