Gold is up 20 percent this year, heading for the seventh straight annual gain, as the dollar dropped to the lowest ever against the euro and crude oil reached a record. Five of the past six bear markets in the dollar have resulted in a higher gold price. The metal reached a record in January 1980 after oil doubled in a year.
``The dollar continues to weaken,'' said Dennis Gartman, economist and editor of the Suffolk, Virginia-based Gartman Letter who recommended clients buy gold last week. ``Crude oil and other commodity prices continue to rise. And under those circumstances, gold shall continue to move from the lower left to the upper right on the charts.''
Gold futures for December delivery rose $9.80, or 1.3 percent, to $763.60 an ounce at 8:56 a.m. on the Comex division of the New York Mercantile Exchange. The metal earlier reached $764.50, the highest for a most-active contract since Jan. 22, 1980, the day after the price reached a record $873.
Silver futures for December delivery rose 17.2 cents, or 1.2 percent, to $14.075 an ounce. Before today, the metal gained 7.5 percent this year.