Gold ETFs Hit New Highs as Gold Approaches $740

Gold exchange traded funds (ETFs) are up across the board as the price of gold rose to a 27-year-high Thursday. The spot price of gold touched $738.10 an ounce, which is its highest price since January 1980 when it hit it’s highest price of $850, according to Muralikumar Anantharaman for Reuters. As gold hit new highs, the dollar fell to a record low against the euro and the spread between two- and 10-year U.S. treasuries widened, which fueled the demand for gold as a hedge against inflation, reports Pham-Duy Nguyen and Claudia Carpenter for Bloomberg. In fact, gold is up 16% for the year. Gold futures for December rose 1.4% to $739.90. Gold ETFs benefiting from the record highs include:

• streetTracks Gold Shares Fund (GLD) – up 13.6% year-to-date
• iShares Comex Gold Trust (IAU) – up 13.2% year-to-date
• PowerShares DB Gold (DGL) – up 8.5% for the last three months as it was launched in early 2007. It invests in gold futures not the bullion.