Investors continued to flock to Gold on Thursday sending it to another 27-year high on Thursday amid expectations of continuing lower U.S. interest rates brought on by a tough credit market and a weak outlook for the slumping U.S. dollar.
The price of Gold for December delivery closed up $10.40 higher, or 1.4 percent at $739.90 per ounce on the Comex division of the New York Mercantile Exchange. An intra-day high of $746.30 was its highest since 1980.
Gold, which is usually seen as a hedge against inflation, has benefited from a downturn in the U.S. subprime mortgage market as investors seek more stable places for their money.
The weak U.S. dollar sank further to an all-time low against the euro Wednesday on the Fedâ€™s decision to lower interest rates by half a percentage point to 4.75 percent and concerns that Saudi Arabia may be looking to unpeg the riyal from the greenback.
The Streettracks exchange traded fund (ETF), which is backed by bullion, hit a record high of 577.10 metric tons on Wednesday. Bullion has gained 15 percent this year.