Gold was trading just off its all time record high as the beleaguered dollar and buoyant oil prices generated a surge of demand for the metal.

Gold hit an all-time record of 992.95 usd an ounce yesterday following a series of weak US data which weighed on the dollar. The US currency steadied overnight but expectations the European Central Bank will keep interest rates on hold later today sent the US currency to a fresh all-time low against the euro this morning, sending gold back within touching distance of its high.

The weak dollar supports gold as it acts as a safe-haven store of value in the face of a weakening currency and makes bullion cheaper for those trading in other currencies.

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Meanwhile gold was also gaining support on the back of soaring oil prices, with crude oil climbing to a record 104.95 usd a barrel in New York trade yesterday. Rising oil prices heighten fears that it will lead to higher inflation, so investors look to gold to hedge against this.

'The ongoing weakness in the dollar and fresh highs for oil look set to entice further anti-recessionary/inflationary hedging towards gold and will ultimately push the metals higher,' said Bullion Desk analyst James Moore.

On the political front a third pillar of support for gold came as Venezuela lined up tanks along the Colombian border, prompting further safe-haven buying.

Analysts said with so many factors combining to support gold it is set to climb even higher in the coming days.

'We could see the metal break through 1,000 usd an ounce if the situation in South America worsens and oil keeps climbing and putting pressure on the dollar,' said Fairfax analyst John Meyer.

At 9.37 am gold was trading at 986.13 per ounce against 986.00 usd in late New York trades yesterday.

Meanwhile support was also firm for the rest of the precious metals as investors judged them to be a safer bet than the fragile equity market.

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