Gold | featured news

The price of gold streaked past $1,700 an ounce for the first time Monday. Investors, beset by worries about the U.S. debt downgrade, Europe's financial crisis and slowing global growth, sought safety in the metal as stocks tumbled around the world.

South Korea's move to buy gold for the first time in 13 years is the latest in a growing trend of central banks diversifying their reserves and reducing dependence on the U.S. dollar.

The spot price of gold set fresh intraday records after Moody's put its long-standing triple-A rating of U.S. Treasurys on review, triggering fresh buying of the yellow metal and prompting bulls to eye a break above $1,600 a troy ounce.

Gold futures topped $1,550 a troy ounce. The silver contract for July delivery settled at $48.599, its highest settlement ever.

Gold is always worth its weight in, well, itself. Sometimes, it's worth even more. A gold nugget, weighing 100 troy ounces, sold at auction in Sacremento for $400,000 Wednesday night. "We valued it at around $200,000," said Amy Baker, auction manager for Holabird-Kagin American. "There were 6 to 7 people bidding on it, most of them anonymously. It went to an anonymous (phone) bidder."

Gold futures finished the year with a 10th consecutive annual gain amid expectations for new record highs next year.

Spot bullion hit on Friday a nominal record of $1,282.75 a troy ounce in London, up 3 per cent on the week, making a gain of 17 per cent this year

Shares rose in Europe and on Wall Street as markets calmed. Gold, however, hit a record amid efforts to defend European countries from sovereign default.

Gold futures barrel to a new record high above $1,100 an ounce, as news that the U.S. unemployment rate topped 10.2% in October boost expectations the Federal Reserve will keep interest rates near zero well into next year, pressuring the dollar.

Shares rose ahead of the start of earnings season, and the value of the dollar skidded as investors fretted over a report that crude oil could one day be priced in other currencies.