Gold rises to near 30-year high

Gold rose to its highest in nearly three decades today as a struggling US dollar lifted its safe-haven appeal.

Gold rose to its highest in nearly three decades today as a struggling US dollar lifted its safe-haven appeal.

Spot gold rose as high as $739 an ounce, its loftiest level since January 1980, on a combination of short-covering and technical buying. It later dipped to $737.15/737.85 an ounce, still higher than $734.20/735.00 late in New York.

Silver rose to its highest in more than three months, platinum hit its best level since early May and palladium touched a five-week high.

Crude oil held near $82 a barrel today after touching a record $84 the previous day as a tropical depression forced the shutdown of Gulf of Mexico output and triggered supply fears ahead of peak winter fuel demand.

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Gold is generally seen as a hedge against oil-led inflation.

It rose to a lifetime high of $850 in January 1980 as high inflation linked to strong oil prices, Soviet intervention in Afghanistan and the impact of the Iranian revolution prompted investors to buy the precious metal heavily.