Gold futures reached a record high of over $875 an ounce on Tuesday, as traders predicted that rising oil prices would increase demand for gold as a safe haven investment. An ounce of gold for February delivery climbed up to $879.40 an ounce on the New York Mercantile Exchange, easily breaking its previous record of $875 set in 1980. Prices later retreated to $877.20, up $15.20 in morning trading. Spot gold also rose to a fresh high, up to $876 an ounce. That beat the previous record high of $869.05 it hit last week. The price of gold has shot up in the past year, reflecting volatile price increases in oil and other commodities, and a weaker dollar. Those trends have increased gold's appeal as a hedge against inflation. However, despite the recent record numbers, the price adjusted for inflation is well below its all time high. An ounce of gold at $875 in 1980 would be worth $2,115 to $2,200 today.
