Gold rose near a 28-year high today after a weak US dollar spurred buying from investors and speculators who believe the price could rise further.
Spot gold rose to $734.70/735.50 an ounce from $731.60/732.40 late in New York. Gold rallied to its highest since January 1980 of $739 on Friday on technical buying and short-covering amid inflation fears and a falling dollar.
The most-active December gold contract on the COMEX division of the New York Mercantile Exchange rose $3.5 to $742.4 an ounce on electronic trade, after hitting another 28-year high at $747.1 an ounce last week.
Record-high oil prices, the Federal Reserve's surprise move to slash interest rates by 50 basis points and a record-low dollar against the euro have elevated gold's safe-haven appeal, helping it move away from a seven-week low of $641.10 hit in August.
Gold has risen as much as $102.2 since the start of 2007.
Bullion used to back Streettracks Gold Shares, the world's largest gold exchange-traded funds, rose to a record 577.10 tonnes last week, reflecting strong interest from long-term investors.