Business Leap Frontier

The price of gold broke above US$1,000 an ounce on Friday for the first time as stocks continued to fall and other securities seen as more risky. Gold futures for April delivery rose as much as $23.80, or 2.4 per cent, to $1,000.30 an ounce. The elevated price of gold is a sign of how terrible the overall state of the financial system is. Investors are upset by the failing banking industry and rising unemployment as it becomes increasingly unclear where the bottom is for other investments.

Analysts anticipate the gold rally will continue as investors drop confidence in their economic assets. Carlos Sanchez, precious metals analyst at CPM Group said in New York that,

With the Dow down to a six-year low and concerns about financial and economic stability worldwide, $1,000 seems to be the new resistance level.