Gold at Record Highs on Oil Rally, other Precious Metals Rise (AP)  (21-02-2008)

NEW YORK (AP) -- Gold surged to a new record high in aftermarket trading Wednesday following the rally in oil prices to above $100 a barrel as well as on bets by investors that the Federal Reserve will cut interest rates again. The precious metal's appeal as a hedge against inflation rose as a resukt.

Other precious metals traded mixed, with silver also touching a record-high and platinum retreating from historic levels.

Gold has risen more than 12 percent this year, driven mainly by oil's ascent to $100 and steep declines in the U.S. dollar. Gold for April delivery jumped as high as $949.20 an ounce in electronic trading on the New York Mercantile Exchange -- the highest ever and within striking distance of the psychologically important $1,000 barrier. Earlier Wednesday, gold settled $8 higher at $937.80.

Silver joined gold's rally, shooting 33.2 cents higher late Wednesday to reach $17.84 an ounce for March delivery on the Nymex, after earlier touching a record $17.87. Silver ended the day 25.20 cents higher to settle at $17.760.

Platinum for April delivery retreated from record territory on profit-taking, losing $14.30 to settle at $2,138.80 an ounce on the Nymex, after earlier falling as low as $2,062 an ounce. March copper fell 1.50 cents to $3.7085 a pound.

Source: AP