Gold rose to a 27-year high in London on speculation that a decline in the dollar will prompt investors to buy the precious metal as an alternative investment.
Silver also rose. Assets in the StreetTracks Gold Fund, the biggest exchange traded fund backed by gold, reached a record 585.53 metric tons, after gaining 12% last month, figures from the World Gold Council show. Gold is up 17% this year, while the dollar has declined 7% against the euro to a record low.
„If you look at the chart, gold and the euro look very similar,” said Wolfgang Wrzesniok-Rossbach, head of sales and marketing at Heraeus Holding GmbH, a precious metals refiner in Hanau, Germany. Gold for immediate delivery rose $6.56, or 0.9%, to $747.66 an ounce at 9:34 a.m. in London after earlier reaching $748.10, the highest since January 21, 1980. The dollar has fallen against the euro for three consecutive days. Silver advanced 13.5 cents, or 1%, to $13.69 an ounce.