Gold hit a record high at $1,167.35 an ounce today as dollar weakness pushed the metal through key technical resistance levels, fuelling momentum buying after the metal's sharp run higher earlier this month.
Spot gold was bid at $1,165.55 an ounce, against $1,148.20 late in New York on Friday. US gold futures for December delivery on the COMEX division of the New York Mercantile Exchange rose $19.20 to $1,166.00 an ounce.
The dollar extended broad losses today, hitting a six-week low versus the yen after comments from a Federal
Reserve official bolstered the view that US interest rates will stay low.
Weakness in the US unit boosts gold's appeal as an alternative asset and makes dollar-priced commodities cheaper
for holders of other currencies.
Oil prices rose more than 1 per cent, meanwhile, to top $78 a barrel, after the US dollar lost its footing and heightened tensions between key oil exporter Iran and Western nations raised speculation of a potential supply threat.
Strong oil prices raise the metal's safe-haven appeal against inflation.
Reuters