(MarketWatch) — Gold hit a long-anticipated high-water mark Friday, briefly breaking through $1,300 an ounce. But the precious metal still has a long way to go to reclaim its inflation-adjusted all-time highs. A gold investor who bought an ounce of the metal at its January 1980 peak would need gold to advance by more than $1,000 an ounce from today’s record levels to come out ahead when 30 years of inflation are taken into account.
People who bought gold in 1980 “have not even halfway broken even,” said Jon Nadler, a senior analyst with Kitco Metals.
On Friday, gold for December delivery, the most active contract, posted an intraday high of $1,301.60 an ounce and closed at $1,298.10 an ounce on the Comex division of the New York Mercantile Exchange. That was its sixth record high in the past seven sessions. Read more on metals stocks.
The $1,300 mark “was the line in the sand between bulls and bears,” said Adam Klopfenstein, a senior market strategist at Lind-Waldock in Chicago.
Gold bulls had been yearning to cross that mark since gold first made forays into record high territory in May, amid the flare-up of the European debt crisis. Even many gold bears had admitted gold was on track to hit $1,300 an ounce later this year or next year. (more)
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