Gold's back to above $1000/oz

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.

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."

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.