LONDON, Feb 29: The price of gold rose to a record high point of 971.50 dollars per ounce here on Friday from 959.75 dollars late on Thursday as the dollar struck fresh historic lows against the euro, traders said.

The previous record high price for an ounce of gold was 964.99 dollars, reached on Wednesday.

A weak US currency boosts demand for dollar-denominated raw materials such as gold because it makes them cheaper for buyers using stronger currencies.

However the increased demand eventually leads to higher prices.

Demand for gold tends to rise at a time of uncertainty about political or economic conditions, and when inflationary pressures appear to be building up.

Silver jumped to a 27-year peak near $20 an ounce, palladium surged nearly 4 percent to its highest in more than six years and platinum rebounded from lows to hover near a lifetime high.

In other metals, silver rose to $19.92 an ounce and was last at $19.69/19.74, versus $19.74/19.79 in New York.

Platinum rose to a high of $2,161 an ounce and was last at $2,153/2,163, versus $2,135/2,140 on Thursday and last week’s record of $2,192.

Platinum, used in jewellery and auto catalysts, has jumped more than 40 pc this year after mines in South Africa, accounting for 80 pc of world output, were shut for five days at the height of last month’s power crisis.

In market news, the Shanghai Gold Exchange, China’s largest precious metals bourse, will ease rules for foreign banks seeking membership, an exchange source said.—Agencies