Gold’s rally rips up the record book with test of US$2,000 looming

SPOT gold blasted past its longstanding record as the dollar plunged and concerns about the global economy boosted demand for havens. Silver rode on its coattails, jumping to the highest in nearly seven years.

Bullion’s move -- which may put it on track to take out $2,000 an ounce -- came as a gauge of the dollar sank to the lowest in more than a year amid negative real rates in the U.S. and bets that the Federal Reserve will keep policy accommodative when it meets this week. Unrelenting investor demand has helped fuel price gains, with inflows into gold-backed exchange traded funds this year already topping the record set in 2009.