Gold Hits Record on Oil Rally

NEW YORK-Gold surged to a record in aftermarket trading Wednesday after oil rallied above $100 a barrel and investors bet the Federal Reserve will again slash interest rates-boosting the metal's appeal as a hedge against inflation.Other precious metals traded mixed, with silver also touching a record-high and platinum retreating from historic levels.Gold has risen more than 12 percent this year, driven mainly by oil's ascent to $100 and steep declines in the U.S. dollar.Gold for April delivery jumped as high as $949.20 an ounce in electronic trading on the New York Mercantile Exchange-the highest ever and within striking distance of the psychologically important $1,000 barrier.Earlier Wednesday, gold settled $8 higher at $937.80."I would point to oil as the primary driver.Oil and gold seem to be in lockstep right now," said Jon Nadler, senior analyst of Kitco Bullion Dealers Montreal.Silver joined gold's rally, shooting 33.2 cents higher late Wednesday to reach $17.84 an ounce for March delivery on the Nymex, after earlier touching a record $17.87. Silver ended the day 25.20 cents higher to settle at $17.760.Platinum for April delivery retreated from record territory on profit-taking, losing $14.30 to settle at $2,138.80 an ounce on the Nymex, after earlier falling as low as $2,062 an ounce. March copper fell 1.50 cents to $3.7085 a pound.Gold's rise also comes as market expectations for further interest rate cuts have solidified. Fallout from the housing slump and credit crunch prompted the Federal Reserve on Wednesday to lower its projection for economic growth this year-raising expectations that the central bank will further decrease its benchmark rate to jolt the economy.Lower interest rates can help the economy but tend to depress the dollar, encouraging investors to shift funds into hard assets like gold or oil as a safeguard against inflation.The contract for March delivery of light sweet crude, which was expiring later Wednesday, rose 73 cents to settle at a record $100.74 on the New York Mercantile Exchange after earlier rising as high as $101.32, a new trading record.Other energy futures fell. March gasoline slipped 1.79 cents to settle at $2.5852 a gallon on the Nymex, while March heating oil fell 0.68 cent to settle at $2.7546 a gallon....
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As in the days of Noah....