Gold prices continued their record-setting pace Friday, as investors remained nervous about the slowing in the global economy.
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.
Gold demand in China and India rose during the second quarter from a year ago. It is expected to remain strong in part because of upcoming festival seasons, when a lot of gold jewelry is sold, the World Gold Council said this week.
Most commodities rose Friday, mainly because of a weaker dollar. Since oil, gold and other commodities are priced in dollars, a weaker dollar makes them more of a bargain for investors using other currencies.
Silver for September delivery rose $1.744, or 4.3 percent, to end at $42.432 an ounce. September copper increased 1.75 cents to $3.9835 a pound. October platinum rose $27.20 to $1,874.90 an ounce and September palladium fell $8.20 to $748.80 an ounce.
Wheat for September delivery rose 23 cents to end at $7.3075 a bushel, December corn increased 12.25 cents to $7.2525 a bushel and November soybeans rose 7.5 cents to $13.685 a bushel.
In energy trading, benchmark West Texas Intermediate crude for September delivery fell 12 cents to end at $82.26 per barrel on the New York Mercantile Exchange.
In other Nymex trading for September contracts, heating oil rose 2.97 cents to end at $2.9045 per gallon, gasoline futures increased 5.8 cents to $2.8412 per gallon and natural gas rose 4.8 cents to finish at $3.94 per 1,000 cubic feet.