Gold surged to a record high above $960 on Wednesday as investors poured money, spurred by a plummeting dollar and oil rising above $102 a barrel.

Silver rallied to its loftiest level since November 1980. Palladium jumped to a 6-1/2-year high, while platinum gained 1.7 percent to trade near last week's record highs.

Spot gold rose as high as $964.70 an ounce and was quoted at $958.40/959.20 at 6:13 a.m. EST, against $946.60/947.40 in New York late on Tuesday. It has gained 16 percent this year.

"The main driver is the record low U.S. dollar, but apart from that, gold should remain fairly well supported even if the currency retracts," said Walter De Wet, precious metals analyst at Standard Bank.

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"There are not many alternatives out there right now. Equities are currently high risk investments and still have negative returns for the year. U.S. Treasury is a traditional safe-haven, but there is also not a lot of value.

"And then what you left with is gold. There is room for gold to move higher as there are pretty bullish conditions."

The dollar slid to an all-time low versus a basket of currencies after weak data underscored the gloomy outlook for the U.S. economy and comments from a top Federal Reserve official cemented views for more U.S. rate cuts.

A weaker dollar makes gold cheaper for holders of other currencies and often lifts bullion demand. The metal is also generally seen as a hedge against oil-led inflation.

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