Gold Climbs to Record as Dollar, Inflation Outlook Spur Demand

Image by Getty Images via Daylife

By Nicholas Larkin and Kim Kyoungwha

Gold rose to a record in New York and London on speculation that a weakening dollar and faster inflation will boost the appeal of precious metals. Platinum and palladium climbed to the highest prices in more than a year, and silver advanced to its costliest since July 2008.

Bullion, which usually moves inversely to the dollar, is on course for a ninth annual gain after the dollar dropped 6.6 percent this year against a basket of six currencies. Futures reached $1,069.70 an ounce in New York, while spot gold climbed to $1,068.63 in London, surpassing the previous highs on Oct. 8.

Gold Climbs to Record as Dollar, Inflation Outlook Spur Demand