Gold advances to three-week high as weaker dollar spurs demand

LONDON: Gold today climbed for a fifth day, reaching a three-week high, as a weaker dollar increased the metal's appeal as an alternative investment.

The precious metal rose 0.3 per cent to 1,625.52 dollar an ounce. It reached $1,626.78 today, the highest since July 31, and a longest run since June 18. Silver also rose 0.8 per cent to a nine-week high of $29.01 an ounce.

The dollar fell versus the euro before Luxembourg Prime Minister Jean-Claude Juncker visits Greece tomorrow to discuss the country's request for an extension to its fiscal adjustment programme.

Holdings in bullion-backed exchange-traded products fell 1 tonne from a record to 2,432.3 tonnes.

The Federal Reserve is due to publish tomorrow minutes of its two-day meeting that ended on August 1. The central bank pledged then to ease policy further if necessary. Fed Chairman Ben S Bernanke may talk about monetary options at a conference in Jackson Hole, Wyoming, at the end of the month.