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LONDON - Gold surged to a record high above $960 on Wednesday as investors piled in, spurred by a plummeting dollar and oil rising above $100 a barrel.

Silver rallied to its loftiest level since November 1980, palladium jumped to a 6-1/2-year high and platinum advanced to trade near last week's record highs before paring gains.

Spot gold rose as high as $964.70 an ounce and was quoted at $959.20/960.00 at 10:04 a.m. EST, against $946.60/947.40 in New York late on Tuesday. It has gained 16 percent this year.

"The main driver is the record low U.S. dollar, but apart from that, gold should remain fairly well supported even if the currency retracts," said Walter De Wet, Precious metals analyst at Standard Bank.

"There are not many alternatives out there right now. Equities are currently high risk investments and still have negative returns for the year. U.S. Treasury is a traditional safe-haven, but there is also not a lot of value.

"And then what you left with is gold. There is room for gold to move higher as there are pretty bullish conditions."

The dollar hovered near record lows as weak data showed orders for long lasting U.S.-made goods fell the most in five months, cementing expectations for further U.S. rate cuts.

A weaker dollar makes gold cheaper for holders of other currencies and often lifts bullion demand. The metal is also generally seen as a hedge against oil-led inflation.

Oil steadied above $100 a barrel, stepping back from its record peak, as the market paused for breath.

"Investor interest in commodities as a whole remains very strong. There is a lot of talk from pension funds about pumping more money into commodities," said Dan Smith, metals analyst at Standard Chartered Bank