What record was set by gold this week?

Gold prices reach record high - $930 an ounce! Prices continue to climb. On Thursday an ounce of gold traded at $930.60 per ounce rising $4.30 from the previous mark on the New York Mercantile Exchange. The prices rocketed on Wednesday after the Federal Reserve cut its key interest for the 2nd time during the period of just one week. "We have seen a lot of momentum trading recently," commented Jon Nadler, an analyst with Kitco. "There was a bit of a knee-jerk reaction after the Fed."

With the possibility of increasing inflation rate, many investors resort to gold for security. The rising demand for this commodity puts a strain on the gold mining industry to develop new gold deposits.

When the economy gets stronger, gold prices usually fall. "We should see gold fall again - possibly more than a bit," said Nadler. "When we reach a return to normalcy, we will see gold trading in the mid-$600 range," he added.