London: Gold climbed over one per cent to trade within striking distance of its all-time high yesterday, as the dollar fell across the board ahead of a Federal Reserve meeting on interest rates.
Spot gold was at $1,012.15 an ounce by 0920 GMT, versus $1,002.55 an ounce late in New York on Monday, when it fell to $995.50 an ounce, its lowest in almost a week.
Traders said further dollar weakness could trigger a rally which could send bullion above its 18-month high of $1,023.85 an ounce hit last week, only a tad lower than its record high of $1,030.80 an ounce struck in March 2008.
But lack of physical buying due to high and volatile price, worries about a liquidation from speculators who have built extremely long positions in New York and the potential impact of IMF's gold sales plan have all capped further gains.
