Gold soared to a new record high Friday on reports that South African mines were halting their operations, due to power supply problems, Bloomberg News reported.

Gold hit a record $924.30 per ounce before pulling back slightly, and was up $14.20 to $920.00 per ounce in mid-day Friday trading.

South Africa's AngloGold Ashanti Ltd., Gold Fields Ltd. and Anglo Platinum Ltd. shut their South African mines because of power problems, Bloomberg News reported. South Africa is the world's No. 2 producer of gold, behind China.

Bullish factors

Independent currency trader Andrew Resnick, who does not trade gold but follows the market closely as part of currency market research, says most fundamental factors are lining up in favor of higher gold prices, moving forward.

Resnick said increased use of gold in industrial and technical applications and as an inflation hedge are two factors he believes will maintain a bull market in gold through 2008.

"More institutions are becoming concerned about oil-precipitated inflation, so as they add gold to their portfolios, that should support prices," Resnick said. "Gold remains a major inflation hedge for much of the world." Oil rose $1.80 to $91.21 per barrel Friday morning on renewed hope that the global economy will be able maintain to a solid growth rate amid the contraction affects of the slow-growth U.S. economy.

All that glitters: gold jewelry

Also, Resnick said an idiosyncratic factor is increasing demand for gold, and with it, the precious metal's price: jewelry.

"There's increasing demand for gold in Asia for use in jewelry and ornamentation, particular in India and China," Resnick said. "In India gold jewelry is part of the culture, and in China, their expanding middle / upper income classes are doing what a lot of people with means do, buying gold items."

Resnick said he does not expect demand for gold to moderate in 2008, and puts the odds of gold hitting $1,000 per ounce in 2008 at 60%.