LONDON -- Spot gold traded to a new record high Tuesday as the dollar fell to a one-week low against the euro.
Gold broke the previous March 2008 record high of $1,032.35 a troy ounce.
As of 1301 GMT, spot gold traded up to $1,033.50 an ounce.
Concerns about dollar devaluation are sending investors to gold, and the precious metal tends to move inversely with the dollar.
Dollar weakness and a break above last month's high of $1,024 ounce caused further buying by technical participants and momentum buyers, traders said.
The December gold hit a record high for any most-active contract ever traded on the Comex division of the New York Mercantile Exchange. The contract peaked at $1,038 an ounce, taking out the previous most-active record of $1,033.90 set in March 2008.
Additionally, October gold has been as muscular as $1,036.40, a record for a nearby contract.
A constant feature of the gold rally has been persistent dollar weakness, accompanied by occasional questioning of the dollar's status as the world's reserve currency, said HSBC analyst James Steel.
Concerns about the U.S. deficit, the dollar, longer-term potential for inflation and overall higher commodities are generally causing gold prices to rise, said Mitsubishi analyst Tom Kendall.
U.K. daily the Independent reported Tuesday that Persian Gulf members of the Organization of Petroleum Exporting Countries are in talks with Russia, China, Japan and France about replacing the dollar with a basket of currencies to trade yesoil, and that gave gold an additional boost, Mr. Kendall said.
Several officials from the Gulf states have since denied the story.
Holdings in the largest gold exchange-traded fund rose at the start of the week. SPDR Gold Trust rose 1.53 metric tons to 1,098.07 tons as of Monday.
Other precious metals have followed gold. "There is a general tidal wave higher, in other commodities as well," said Mr. Steel.
December silver was up 69 cents to $17.225. Meanwhile, January platinum rose $18.10 to $1,319.90 an ounce, while December palladium gained $1.70 to $305 an ounce.
