Gold jumped today and held within sight of the $1,000-an-ounce barrier broken on the futures market after the dollar hit a record low against the euro.
Gold futures for April delivery on the Comex division of the New York Mercantile Exchange added $4.7 an ounce to $998.5, having struck a record $1,001.50 on Thursday.
Gold has gained nearly 20 per cent in 2008, driven by buying from investors and speculators on expectations of further interest rate cuts in the United States and record high oil prices, which raised its appeal as a hedge against inflation.
Spot gold rose to $997.20/998.00 an ounce from $991.00/991.80 late in New York. It had powered to another record high of $999.90 an ounce yesterday.
Platinum and palladium held below their recent highs, while silver tracked firm bullion.
Gold hit $850 an ounce in January 1980 as high inflation linked to strong oil prices, plus the Soviet intervention in Afghanistan and the impact of the Iranian revolution, prompted investors to buy the metal.
The dollar hit a record low against a basket of currencies and fell back below 100 yen, with traders citing rumours of more hedge fund failures.
