Gold reaches 28-year high as dollar falls to record low

LONDON (6 Nov) A tumbling dollar and strong oil prices prompted investors and speculators to buy gold Tuesday, with the metal hitting a 28-year high and trading about $30 below its record peak. Platinum hit an all-time high $1,466 an ounce and silver surged to $15.09 an ounce, its highest level in 18 months. Its 25-year peak is $15.17 in May 2006.

"It's still largely a dollar story, but there is clearly more than that. Gold has just got momentum," said Stephen Briggs, economist at SG Corporate and Investment Banking.

"When oil goes up, it benefits gold, but when oil goes down, it doesn't damage the metal.All the evidence is that jewellery demand is now very much on the defensive, but that's irrelevant if there are enough investors who think gold should go up."

Spot gold hit a high of $821.30 an ounce, highest it's been since January 1980, when it set a lifetime high of $850.