Gold price strikes fresh 27-year peak

Saturday October 27, 2007

The price of gold rocketed Friday to the highest level since the start of 1980, as the precious metal won support from the weak dollar and record high crude oil prices, traders said.

On the London Bullion Market, gold prices surged as high as 778.50 dollars per ounce, which was last seen in January 1980.

In early European trade, the euro struck 1.4375 dollars -- the highest level since the single currency's creation in 1999.

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Gold benefits from a weak US unit because it makes commodities that are priced in dollars cheaper for buyers using stronger currencies.

Meanwhile, the price of New York crude surged past 92 dollars per barrel for the first time, lifted by rising tensions in the oil-rich Middle East and new US sanctions against Iran, dealers said.

Higher oil prices spark inflationary concerns, while gold is regarded as a haven in troubled times.

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