Gold nears 27-year high again

Gold traded within 1.3 per cent of the highest since 1980 on speculation that the Federal Reserve will cut interest rates, boosting bullion's appeal as an alternative investment to US dollar-denominated assets.

Bullion for immediate delivery on the London Metal Exchange climbed as much as $2.15, or 0.3 per cent, to $784.25 an ounce, before trading at $780.32 at 9:18 am local time.

Bullion rose to $794.70 an ounce on October 29, the highest since January 1980. Silver rose 0.2 per cent to $14.18 an ounce.

The dollar fell to a record low against the euro, as traders bet the Federal Reserve will reduce its benchmark interest rate by a quarter-percentage point, dimming the allure of US assets.