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Gold tops $1000

Yes, the long awaited milestone has been reached.

Today, gold reached a $1000 an ounce for the first time ever, as investors continue to regard precious metals as a safe haven in this current market environment.

Here's more from Bloomberg:

"Gold rose above $1,000 an ounce for the first time as mounting credit-market losses spurred demand for bullion as a haven from the sagging dollar and equities.

Silver and platinum also advanced as the dollar dropped below 100 yen for the first time since 1995 and to a record against the euro. Standard & Poor's increased its forecast for bank writedowns related to subprime mortgages to $285 billion. Gold is up 37 percent since the Federal Reserve began cutting interest rates in September, sending the dollar tumbling.

Gold futures for April delivery climbed $13.30, or 1.4 percent, to close at $993.80 an ounce on the Comex division of the New York Mercantile Exchange. The price earlier reached $1,001.50, the highest ever for a most-active contract."

Still buying this "strong dollar policy" stuff?

Meanwhile, the folks at Bespoke Investment are cautioning investors to look at the gold/dollar ratio, which now seems stretched to the upside, at least in their view. However, the chart doesn't seem to hold much sway with readers at Seeking Alpha, who note that gold is still well below the inflation adjusted peak of its 1980 highs.

In order to surpass the 1980 high in inflation adjusted terms, gold would have to reach $2,284 an ounce, or $6,255 an ounce, depending on the inflation measure used for price adjustment.

Similar criticisms of the value of this gold/dollar index ratio were leveled back when gold was trading below $750 an ounce.

For more background on gold's ongoing bull run, see our January commentary, "Gold's new high: a round up of views".

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