Gold rose in New York, poised for a 10th consecutive annual gain, as investors sought a protection of wealth and alternative to currencies. Silver headed for the biggest yearly advance in 31 years, and platinum and palladium were set for a second annual increase. The dollar fell to a two-week low against the euro today. Gold futures, which usually move inversely to the greenback, reached a record $1,432.50 an ounce on Dec. 7 as concern over sovereign debt in Europe helped boost demand. Spot prices’ decade-long winning streak is the best performance since at least 1920. “People are worried about the dollar, and at the same time they are worried about currencies themselves,” said Bernard Sin, head of currency and metal trading at bullion refiner MKS Finance SA in Geneva. “People are moving part of their assets into gold for a safe haven.” Gold futures for February delivery added $6.80, or 0.5 percent, to $1,412.70 an ounce by 8:06 a.m. on the Comex in New York after yesterday reaching $1,415.40, the highest price since Dec. 7. The metal for immediate delivery in London was 0.5 percent higher at $1,412.25. Trading will likely be subdued today as the year ends, Sin said. Bullion rose to $1,410.25 an ounce in the morning “fixing” in London, used by some mining companies to sell output, from $1,405.50 at yesterday’s afternoon fixing. The next fixing will take place on the morning of Jan. 4, 2011. Prices have also reached all-time highs in British pounds, euros and Swiss francs this year. ETP Holdings Gold jumped 29 percent this year after governments spent trillions of dollars and kept interest rates low to bolster economies following the worst global recession since World War II. Precious-metals prices and holdings in exchange-traded products rose as investors lost confidence in currencies and became more concerned about the fiscal health of euro-region countries including Ireland. Bullion’s 2010 increase is the most since a 31 percent jump in 2007. “Gold’s rally will continue next year as inflation pressures continue to build and currencies remain weak,” said Li Ning, an analyst at China International Futures Shanghai) Co. “The global economy is recovering, but we’re not completely out of the woods quite yet, and gold’s safe-haven status will increase investment demand.” The Standard & Poor’s GSCI spot index of 24 commodities is up 19 percent this year, led by cotton and silver, while natural gas and cocoa dropped the most. The gauge extended last year’s 50 percent advance and has outperformed the MSCI World Index of equities and U.S. Treasuries. Silver, Palladium Silver for March delivery in New York rose 0.6 percent to $30.70 an ounce after yesterday reaching a 30-year high of $30.93. It’s up 82 percent this year, the best performance since surging more than fivefold in 1979. Futures reached a record $50.35 in 1980, a year after the Hunt brothers tried to corner the market. Palladium for March delivery gained 1.2 percent to $795.80 an ounce. It yesterday touched $799, the highest level since March 2001, and is the best-performing precious metal this year with a gain of 95 percent. Platinum for April delivery was 0.3 percent higher at $1,755.20 an ounce, set for a 19 percent increase this year. To contact the reporters on this story: Nicholas Larkin in London at nlarkin1@bloomberg.net; Glenys Sim in Singapore at gsim4@bloomberg.net To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net.

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