US gold futures surged past the historical level of 1,000 US dollars an ounce on Thursday, as panicking investors reacted to fresh lows for the US dollar and soaring oil prices.

Gold soared above 1,000 US dollars per ounce for the very first time on Thursday, a new milestone in futures trading, prompting many investors to enter the bullion market.

The price of gold has jumped nearly 20 percent since the start of the year, after rising nearly 32 percent in 2007. The huge advance is mainly the result of a weaker dollar and record-high prices in crude oil. The dollar fell below 100 yen Thursday for the first time in 12 years and hit another new low against the euro, while oil traded above 110 dollars a barrel.

Many industry insiders say that if the dollar continues to weaken, bullion could rise even further, as more investors turn to gold as a hedge against inflation. But prices could retreat in the short-term due to profit taking.

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The euro traded at $1.5612, up from $1.5587 late Thursday in New York. Earlier Friday, the euro notched a record high of $1.5651.

Later, in midday trading in New York, the euro fetched $1.5619.

Other dollar rates in Europe, compared with late Thursday, included 100.28 Japanese yen, down from 102.04; 1.0063 Swiss francs, down from 1.0143; and 0.9892 Canadian dollars, down from 1.0141.

The British pound was quoted at $2.0308, up from $2.0292.

In midday New York trading, the dollar bought 100.09 yen and 1.0051 Swiss francs, while the pound was worth $2.0293.

Gold traded in London at $998.20 per troy ounce, up from $993.60 late Thursday. In Zurich, gold traded at $998.55 bid per troy ounce, up from $990.90.

Silver traded in London at $20.58, up from $20.52.

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Other commodities traded mostly lower, with crude oil, copper and agriculture futures falling.

Following weeks of flirting with the $1,000 mark, gold finally breached the milestone Thursday after the dollar plunged against rival currencies. The dollar hit a record low Friday against the euro, which bought as much as $1.5687. The greenback’s fall has been a major driver of gold because investors consider the metal a safe investment in times of economic turmoil and rising inflation.

Investors pushed gold higher Friday in reaction to a plan by the New York Federal Reserve and JPMorgan Chase & Co. to provide secured funding to Bear Stearns in a bid to keep the troubled investment firm from collapsing amid a global credit crisis.

“The fact that gold was able to power back over $1,000 was very much due to the bad credit-related news that continues to sweep Wall Street,” said James Steel, analyst with HSBC in New York. “The credit crisis keep morphing and the safe-haven buying keeps getting reinforced.”

Gold for April delivery gained $5.70 to settle at $999.50 on the New York Mercantile Exchange, after earlier rising as high as $1,009 — a new trading record. The metal rose above $1,001 in aftermarket trading.

Gold has gained nearly 20 percent this year amid the tumbling dollar, record-high crude prices and nervousness about the faltering U.S. economy. Analysts say the metal could go even higher if the Federal Reserve continues its interest rate-cutting campaign when it meets on Tuesday.

Lower interest rates can boost the economy but also tend to undermine the dollar, encouraging investors to buy hard assets like gold and silver. A weak greenback also makes dollar-denominated commodities like gold cheaper for overseas buyers.

Other precious metals traded mixed Friday. Silver for May delivery gained 23.5 cents to settle at $20.655 an ounce on the Nymex, while May copper fell 0.30 cent to settle at $3.820 a pound.

In energy markets, crude oil prices dipped modestly, closing lower for the first time in a week as the slide on Wall Street and U.S. economic worries led to profit-taking.

Light, sweet crude for April delivery fell 12 cents to settle at $110.21 on the Nymex, after rising earlier to just below its latest trading record of $111, set Thursday.

Other energy futures rose Friday. April heating oil futures rose 2.17 cents to settle at a record $3.1465 a gallon after earlier setting a new trading record of $3.222 a gallon. April gasoline futures rose 0.66 cent to settle at $2.6894 a gallon.

In agriculture markets, wheat, corn and soybean futures plunged amid expectations that the U.S. economic downturn will dampen demand.

Wheat for May delivery plummeted 52.5 cents to settle at $11.915 a bushel on the Chicago Board of Trade, while May soybeans lost 50 cents to settle at $13.5275 a bushel. May corn fell 10.25 cents to settle at $5.5925 a bushel on the CBOT.

By STEVENSON JACOBS

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