London: Gold fluctuated near a record in London as a weakening dollar spurred demand for the metal as an alternative investment. Silver rose to the highest price since March 2008.
The dollar fell to a five-week low against the euro yesterday. Gold, which usually moves inversely to the greenback, is trading 0.5 per cent below a record $1,274.95 an ounce set on September 14.
A US report on jobless claims may add to evidence that growth in the world's largest economy is slowing, according to a Bloomberg survey of economists.
"The dollar has been weakening and that's been helping gold," said Eugen Weinberg, head of commodity research at Commerzbank.
"Investors are looking for a safe haven. The market may tread water" until US data is released later yesterday, he said.
Immediate-delivery bullion added 80 cents, or 0.1 per cent, to $1,268.85 an ounce at 9.51am in London. Prices swung between a gain of 0.1 per cent and a loss of 0.2 per cent. Gold for December delivery was 0.1 per cent higher at $1,270.30 on the Comex in New York.
Bullion is set for a 10th annual gain as investors seek an alternative to currencies, as well as protection against financial turmoil in Europe and the prospect of slowing economic growth.
Bubble
Billionaire George Soros said on Wednesday at a Thomson Reuters Newsmaker event that prices are in a bubble and may head higher before retreating.
"I called gold the ultimate bubble, which means it may go higher, but it's certainly not safe, and it's not going to last forever," Soros said. His spokesman, Michael Vachon, confirmed the comments.
