NEW YORK ( TheStreet ) -- Gold prices 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 gold price 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. Silver prices 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 Morgan Stanley ( HPQ) lowered U.S. growth prospects for 2011 and 2012, gold prices showed no signs of slowing down. Citigroup ( C) 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%. JPMorgan ( JPM) 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 ( BAC) 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 Hewlett-Packard's ( HPQ) dismal 2011 outlook kept stocks volatile giving limited respite from Thursday's carnage. The popular gold ETF, SPDR Gold Shares ( GLD), 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.