Gold rose to the highest since January 1980 after the dollar fell against the euro and crude oil rallied to a record. Silver also gained.

A weaker dollar boosts bullion's appeal as an alternative investment. The currency touched $1.4360 per euro. Gold, which often moves in tandem with oil, is also favored as hedge against inflation when raw materials prices are rising.

The dollar fell after an unexpected decline in durable goods and higher-than-forecast jobless claims fueled bets the Federal Reserve will cut interest rates at the end of this month.

Crude oil rose to a record above $91 a barrel on an unexpected drop in U.S. stockpiles and concern that supply from the Middle East may be disrupted.

Speculative interest in gold is at an all-time high, with jittery stock markets, a weakening dollar and increasing inflation concerns all ``positive factors'' for the precious metal.