AURYN Mining Corp. (AUMC)

[Ex Blockman]

Gold Soars Above $1,000 An Ounce
2/20/2009 3:18 PM ET

http://www.rttnews.com/ArticleView.aspx?Id=861079

(RTTNews) - Gold soared again Friday and closed above $1,000 an ounce for the first time since last March. Investors flocked to the precious metal as a hedge investment with no end in sight for the global recession.

April-dated gold futures rallied to $1,002.20, up $25.70. The metal hit as high as $1,007.70, its best intraday mark in 10 months. With the rally, gold challenged its record high close of $1,003.20 from March 17.

The metal climbed toward the record-high of $1,033.90 it reached in overnight trading on March 18. Gold has gained more than $100 in the last 10 sessions and is up nearly $200 from its January lows.

For the week, gold added $60 per ounce. The metal closed higher for the sixth time in eight sessions and has added nearly $200 from its low crossing of January.

Gold's hedge appeal has skyrocketed as stock markets plunge around the globe. The Dow Jones Industrial average continued to decline on Friday after closing Thursday at its lowest level since 2002.

Markets in Germany, France, the UK and Japan also saw sharp declines.

On the economic front, the Labor Department said its consumer price index rose 0.3 percent in January following an unrevised 0.8 percent decrease in December. The modest rebound in consumer prices matched the expectations of economists.

The dollar hit the skids versus other major currencies Friday in New York, erasing most of this week's gains versus the euro and yen as traders took in another round of key inflation data. Gold usually moves opposite the dollar.

President Barack Obama spoke at a meeting with the nation's mayors Friday, where he emphasized the importance of the recently-passed American Recovery and Reinvestment Act.

The act is a nearly $800 billion stimulus package created to stimulate the economy out of its current crisis through job creation and other programs. It passed through the Congress, despite heavy Republican opposition, and was signed into law by Obama earlier in the week.

by RTT Staff Writer