London: Gold prices set a new peak of over 1,005 dollars in London today on brisk buying triggered by rising concerns of inflation after crude surge to all-time high and dollar plunge to records, traders said.

Gold for immediate delivery climbed to 10.85 dollars, or 1.1 per cent, to 1,005.68 dollars an ounce as crude oil touched an all-time high of 111 dollars a barrel and dollar plunged to new lows. This drove investors to park money in gold, which is considered a safe haven.

The precious metal rose to a record of more than 1,000 dollar an ounce for a second consecutive day in a row.

Traders said the rising inflation all over the world led by the US economy and a steep fall in industrial growth in India, the second biggest consumer of the precious metal, boosted demand for gold as a best bet for quick profits.

Source : PTI