London, Sept. 28 (PTI): Gold prices spurted to a near 28-year high in London today on frantic buying by dealers as dollar weakened against currencies including the euro and Indian rupee, raising demand for the precious metal as a safer investment option.
The gold opened here nearly 6 dollars higher at 740 dollars an ounce, a level never seen since January 1980. Later in the day, it rose further to 743 dollars an ounce. In the US, the yellow metal in the US opened at 751.30 dollars in futures trading for December delivery.
Gold prices in the US influence rates in London, which in turn impact the Asian markets.
Market players said the weak dollar and high crude oil prices boosted spot gold close to a near 28-year high level in Asian markets this morning, fueling short covering and raising hopes of a further rise later in the day.
They said the precious metal's outlook remained strong based on overnight data in the US that showed new home sales fell 8.3 per cent. The negative impact on the US economy from its flagging housing market could prompt further interest rate cut by the US Federal Reserve, a positive scenario for gold prices, they added.
