Gold prices hit a 28-year high today on the back of a tumbling dollar, record-high oil and inflation concerns.
Prices eased later with a marginal recovery in the dollar, but sentiment remained bullish, and the metal was seen moving towards its lifetime high of $850 next year, analysts said.
Gold hit a peak of $799.30 an ounce, its highest since January 1980 when it scaled an all-time high of $850. It eased to $792.60/793.30 by 11am (Irish time), against $791.70/792.50 in New York late yesterday.
After adjusting for inflation, gold's lifetime high is equal to $2,079 an ounce at 2006 prices. Prices have jumped 25 per cent since the latest rally began in mid-August.
Oil leaped more than 1 per cent, briefly topping $96 a barrel for the first time and extending the previous day's 5 per cent jump after an unexpected sharp fall in US crude stocks and data showing strong economic growth.
The dollar recovered from record lows against the euro after the Federal Reserve cut rates the previous day but dampened expectations of further monetary policy easing this year.