NEW YORK (
catapulted to a new record Friday as fears of a global double-dip recession sent investors piling into the safe-haven metal.
Despite the flight to safety, experts warn that time may be up for this current rally.
Gold for December delivery skyrocketed $30.20 to close at $1,852.20 an ounce at the Comex division of the New York Mercantile Exchange, although settled well off session highs. The
has traded as high as $1,881.40 and as low as $1,824.50 while the spot gold price was adding $25, according to Kitco's gold index.
closed up $1.74 at $42.43 an ounce. The
U.S. dollar index
was down 0.42% at $73.94 while the euro was up 0.44% vs. the dollar.
Gold prices have risen more than 6% in just a week as investors gobbled up the metal as protection against slowing global growth from China to Germany to the U.S. A day after
lowered U.S. growth prospects for 2011 and 2012, gold prices showed no signs of slowing down.
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also joined the fray, lowering its 2011 U.S. growth forecast from 1.7% to 1.6% and for 2012 to 2.1% from 2.7%.
went event further, warning that the U.S. will grow just 1% in the fourth quarter from the previously expected 2.5% and just 0.5% in the first quarter of 2012. While growth signs point to the possibility of a double-dip recession,
Bank of America
may slash 10,000 jobs, according to a report by
The Wall Street Journal
, which is ominous for any attempt at a recovery in employment.
Investors don't really have a lot of options for "safe" places to stash cash as
dismal 2011 outlook kept stocks volatile giving limited respite from Thursday's carnage. The popular gold ETF,
SPDR Gold Shares
, added 15 tons Thursday to 1,286, but many experts are now bracing for a pullback after gold's explosive run.
David Banister, chief investment strategist at ActiveTradingPartners.com, said that gold will peak at either $1,862, $1,880 or $1,907 an ounce.
"One of those three is going to peak out this parabolic blow off top rally and be followed by a great opportunity to profit by shorting," he said.
Banister, who thinks that gold's long-term bull run is not yet over, said that peaks are typically followed by 15%-20% corrections, which would take gold to the $1,500 an ounce level.