NEW YORK, Sept 22: Gold erased early gains to end lower in New York on Friday as investors locked in solid gains this week after prices surged to record highs on inflation fears and as the dollar slumped.

Yet overall market sentiment remained bullish, traders and analysts said.

Other precious metals also advanced, with silver rising to its highest level in more than three months, platinum hitting its highest since early May and palladium touching a five-week peak.

Spot gold rose as high as $739 an ounce, its highest since January 1980, also boosted by technical buying and short covering. It was quoted at $731.30/ 732.10 by 3:37 p.m. EDT (1937 GMT), against $734.20/735.00 in New York late on Thursday.

Most-active December gold on the COMEX division of the On Friday, the dollar fell slightly against the euro after the greenback tumbled below $1.40 per euro for the first time on Thursday, weighed down by a hefty US interest rate cut this week and expectations of more moves to come.

We expect further advances into 2008 based on new lows in the US dollar, Deutsche Bank said in a weekly report.

—Reuters