Other metals jumped on bullion’s bandwagon with platinum closing in on a record $1,542 an ounce, silver hitting a five-week high and palladium at its best in six weeks.
Spot gold surged to $US848,60 an ounce its highest since January 1980 when gold prices were fixed at a record $850.
“The fundamentals are very strong for gold there’s no doubt about it,” said David Thurtell, metals analyst at BNP Paribas.
“Certainly the safe-haven bid, weaker dollar and credit market turmoil has been favourable for gold, and oil hitting $97 is not doing it any disservice,” he added.
Gold gained more than 30% in 2007, in its biggest annual gain since 1979.
The euro was up half a percent on the day versus the dollar, with investors betting that upcoming U.S. economic news might be weak enough to confirm a need for more U.S. interest rate cuts.
The market awaited the release of the U.S. Institute for Supply Management index for December, a key gauge of U.S. economic performance, due at 1500 GMT, for clearer direction.
Investors also will study minutes of the Federal Reserve’s December policy meeting, when it decided to cut its funds rate by 25 basis points.
Post published in: Economy