Gold has rallied 29 percent this year, heading for the seventh straight annual gain, as a weak dollar and record energy costs sparked demand for a hedge against inflation. Investment in the StreetTracks Gold Trust, an exchange-traded fund backed by bullion, has risen 32 percent this year to a record 598 metric tons.
``This gold market is up, up and away,'' said Ron Goodis, futures trading director at Equidex Brokerage Group Inc. in Closter, New Jersey. ``The dollar is going to keep skidding. We don't know if it's going to be a recession, inflation, stagflation. People want to buy gold.''
Gold futures for December delivery rose $14.80, or 1.8 percent, to $825.60 an ounce at 8:55 a.m. on the Comex division of the New York Mercantile Exchange. The price reached $873 an ounce on Jan. 21, 1980, the highest ever.