Gold Holds Near 28-Year High

Gold is headed for a seventh year of gains as it held near its highest in almost 28 years, boosted by crude oil gains and the dollar's decline against major currencies.

Gold gained 32 percent this year as surging fuel expenses boosted demand for the metal as a hedge against inflation. The spot price climbed to a record $850 on Jan. 21, 1980.

The dollar declined against 14 of the 16 most active currencies this year as the Fed lowered borrowing costs three times because of a slumping housing market.

Gold futures are headed for the biggest annual gain since 1979, the longest rally since futures began trading in 1975. Futures reached a 27-year high of $848 on Nov. 7., Bloomberg
12/31/2007 8:06:19 AM