LONDON (Reuters) - Gold prices jumped through the psychological $1,000 an ounce level on Tuesday to its highest since February, boosted by a weak dollar and investors looking for a hedge against inflation, traders said.I also believed a correction was coming to the point were I even bought a few puts. But the same way that the stock markets didn't correct, gold hasn't neither. But the correlation between the two has been quite high in the past several months.
Gold futures hit $1,007.1 an ounce and spot gold saw $1,004.95 an ounce, the highest since February 20 when it touched $1,005.40.
Futures have topped $1,000 nine times -- three times this year and six last year, including a record $1,033.90. Spot have risen above $1,000 just four times - once in February and three times in March 2008, when they hit a record $1,030.80.
"There's a lot of euphoria, the market has been waiting to test the $1,000 level," a Europe-based trader said. "Whether it lasts will depend on investors and whether they want more ... Myself, I think it unlikely. A sharp correction is due."