Stocks lowest level in 6 yrs Gold UPNEW YORK (CNNMoney.com) -- Gold prices rose above $1,000 an ounce Friday, for the first time in nearly a year, as stocks continued to fall and investors flocked to the metal to preserve capital.
Gold for April delivery, which has surpassed February gold in trading volume, was up $21 to $997.50 an ounce in New York after climbing to a high of $1,000.30 earlier in the session.
The last time gold traded at such high levels was in March 2008 amid volatile financial markets and inflation concerns. It rose to an all-time trading high of $1,014.60 an ounce on March 17 and settled at a record $1,003.20 an ounce on March 18.
Still, gold remains well below its inflation-adjusted highs touched during a spike nearly 30 years ago. Gold rose to $825.50 on Jan. 21, 1980, which is $2,186.50 in today's dollars, according to the Minneapolis Fed Calculator.
Many investors view gold as a safe-haven because precious metals tend to hold value during times of economic duress. As a result, gold tends to rally when stock prices retreat.
"With the Dow down to a 6-year low and concerns about financial and economic stability worldwide, $1,000 seems to be the new resistance level," said Carlos Sanchez, precious metals analyst at CPM Group in New York.
Sanchez said gold could push higher towards the close of trading, and that it could continue rising over the next few weeks, "given what's going on with stocks."
Stocks continued to slide Friday morning, one day after the Dow Jones industrial average fell to its lowest level in 6 years, as shares of financial institutions lead the market lower.
The blue-chip average ended Thursday's session at the lowest point since Oct. 9, 2002, the low of the last bear market, and it was own another 1.5% about half way through Friday's session.
Stocks have been falling over the last few weeks, and gold has been rising, as investors expressed doubts about the government's ability to lift the economy out of one of the longest recessions on record.
The gloomy sentiment on Wall Street comes despite a number of new government initiatives announced this week.