Shares of gold mining companies rose Friday after the price of the metal surged in U.S. trading to a four-month high.
Gold for August delivery added $16.40 to $958.40 an ounce on the New York Mercantile Exchange, after earlier rising as high as $969.10, the highest since March 19.
James Steel, analyst with HSBC in New York, said there are similarities between the current situation and the situation just a few months ago when gold was climbing sharply.
Nervousness about the U.S. economy, record energy prices and a falling dollar helped propel gold 34 percent higher in the past year, but prices have been unable to crack the $1,000 level first breached in March after the collapse of Bear Stearns & Co. Gold is viewed as a safe-haven asset during times of economic instability and rising inflation, he said.
"The 1,000 mark accompanied a bank failure the last time so it's questionable whether the situation now is as severe, but that doesn't mean it won't go back to that level," the analyst said.
In afternoon trading, shares of Barrick Gold Corp., the largest gold miner in the world, rose $2.23, or 4.8 percent, to $48.95.
Newmont Mining Corp. rose $1.91, or 3.9 percent, to $51.09 and Gold Fields Ltd. rose 52 cents, or 4.3 percent, to $12.54.
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