At one point gold topped $1,880 an ounce on its fifth straight day of increases. The price has risen about 30 percent this year and demand is expected to remain strong.
Several analysts have raised the possibility of another recession because of slower growth in the U.S. and unresolved sovereign debt problems in Europe. A recession is usually defined as two consecutive quarters of negative economic growth, measured by a country’s gross domestic product.
Gold for December delivery rose $30.20 on Friday to finish at $1,852.20 an ounce after earlier reaching $1,881.40 an ounce. The price is a record high in dollars but remains below the 1980 peak when adjusted for inflation.
When there is uncertainty about the economy, investors often buy gold because of its reputation as a more stable asset. Central banks around the world have been net purchasers of the precious metal as they try to diversify reserves.