The price of gold rose above $843 today, close to its all-time high of $850, as the precious metal profited from political unrest in Pakistan and a weak dollar.
Gold prices, which have risen by nearly a third in 2007, climbed as high as $843.24 an ounce in early trade, but later slipped back to $840.75 on the London Bullion Market.
The precious metal is widely regarded as a haven in troubled times. Gold prices were also winning support from a struggling dollar, which fell against major rivals on the last trading day of 2007 in the wake of weak US data on new home sales last week.
A falling US currency encourages demand for dollar-priced commodities because it makes them cheaper for buyers using stronger currencies.
The price of gold has also risen this year because of increased jewellery purchases in emerging economic powerhouses China and India, according to the World Gold Council.
Gold struck a 27-year peak of $845.84 on November 7. Its all-time high stands at $850, reached on January 21, 1980.
