Gold Hits 24-Year Peak at $518

The price of gold, which had already crossed the $500 mark, continued its rise and hit a 24-year high last night when it climbed to $518 per ounce. That high was not maintained, however, and spot gold eventually slipped a little before closing at $514.90 per ounce.

Gold for immediate delivery rose to $518.92 an ounce, the highest since March 1981. In Tokyo, gold for delivery in October 2006 rose as much as 22 yen, 1 percent, to 2,060 yen per gram, the highest since at least 1989, according to Bloomberg data.

At 3:23 a.m. EST gold future stood at $521.50 an ounce, according to Bloomberg’s Market Data Commodity Futures.

Analysts expect the price of gold to continue its climb, rising to $550 before stopping.

Investors are showing a growing interest in gold, and as the price continues to rise, more money is being invested. But, some warn that the further the price goes up, the greater it is expected to fall. A ScotiaMocatta precious metals director, quoted by Reuters, expects the drop in price to be around $30.