Gold futures climbed back above $1,790 per ounce Wednesday amid escalating risk aversion in U.S. financial markets.
COMEX gold futures, per the December contract, settled with a gain of $41.30, or 2.4%, at $1,784.30 per ounce, but the yellow metal extended its gains in electronic trading this afternoon. As of 4:05pm ET, gold futures hovered at $1,794.20 per ounce.
Earlier today, the yellow metal surpassed $1,800 for the first time ever, on the way to its latest all-time high of $1,801.00 per ounce.
While gold rallied to a new record level, the broader U.S. equity markets extended their losses. The Dow Jones Industrial Average (DJIA) plunged 519.83 points, or 4.6%, to 10,719.64. This marked the second day this week that the Dow Jones fell more than 500 points, as widespread liquidation engulfed Wall Street.
Jim Steel, a precious metals analyst at HSBC, commented that “The (gold) market remains well bid and the downturn in the equity markets continues to show a lack of investor confidence.”
Gold shares advanced alongside the yellow metal, with the AMEX Gold Bugs Index (HUI) rising 3.1% to 567.09.