Aug. 19, 2011 (Bloomberg) -- Gold rose to a record above $1,880 an ounce in New York, rallying for the seventh straight week, as concern that the global economy is slowing drove equities lower.
The metal had its longest run of weekly gains since April 2007 as worse-than-expected U.S. economic data and Europe’s debt crisis boost speculation that growth will falter. The MSCI All- Country World Index of equities fell as much as 1.7 percent, heading for the fourth straight weekly drop, after Morgan Stanley cut forecasts for global growth.
“Lack of confidence in the global economy is pushing people towards gold,” Tom Pawlicki, a Chicago-based analyst at MF Global Holdings Ltd., said in a telephone interview. “Gold will continue to advance unless leaders are able to resolve the European or U.S. debt crisis.”
Gold for December delivery gained $30.20, or 1.7 percent, to settle at $1,852.20 on the Comex at 1:42 p.m. in New York, after touching $1,881.40, the highest ever. Prices have gained 6.3 percent this week, the most since February 2009, and 14 percent this month.
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