NEW YORK, Oct 25: COMEX gold steamrolled to within $2 of last month’s seven-year peak Friday, shining brightly against a tumbling dollar, while trade houses backed up their bullishness with heavy buying of options, dealers said.

As it has all year, the dollar’s fall against the euro encouraged funds to shift into gold.

The near $23 rally this week gathered steam Friday as an investment bank bought out-of-the-money December $400 call options on the COMEX, which dealers said could pave the way for underlying futures to test that psychological level.

The December contract topped at $393.00 an ounce, a whisker from the bull market high at $394.80 on Sept 25.—Reuters