LONDON, April 17: Gold climbed to a three-week high above $950 an ounce on Thursday on record high oil prices and a struggling dollar, but the bullion market needed an extra push to move substantially higher, analysts said.

Other precious metals also advanced tracking gold prices, with both silver and platinum rising more than 2 per cent to one-month highs and palladium gaining 1.75 per cent.

Spot gold rose as high as $952.60 an ounce and was quoted at $950.00/951.00 against $943.90/944.70 in New York late on Wednesday, when the metal gained 2 per cent.

Crude oil is still rising and that’s supporting commodities across the board. On top of that, the market seems to be eying a break for the euro/dollar above $1.60, said Walter De Wet, precious metals analyst at Standard Bank.

If gold breaks the $950-$954 level, technically we might see a rally higher. But for the metal to test much higher, we need some increased risk aversion and that may come from some really bad US data or poor earnings results.

Analysts said that gold’s upward move was not yet convincing despite positive factors such as a record low dollar against the euro and historically high oil prices. A similar environment powered gold to a record high of $1,030.80 an ounce last month.

Oil prices set a record above $115 a barrel as a fall in US gasoline inventories raised supply shortage concerns ahead of the summer driving season.

Gold is generally seen as a hedge against oil-led inflation and often moves in the opposite direction of the dollar, as the metal is traditionally considered as an alternative investment and a safe-haven asset. Some analysts said bullion outlook appeared positive.

In other markets, US gold futures for June delivery rose $5.7 an ounce to $953.90.Platinum rose as high as $2,063 an ounce and was last quoted at $2,060/2,070, up from $2,015/2,025 in the US market late on Wednesday.

Silver climbed to $18.68/18.73 an ounce from $18.28/18.33 an ounce, while palladium was up $8 at $463/468.—Reuters