Gold on this week reached its highest price for almost 28 years at more than $739 a troy ounce, as investors rushed to buy the yellow metal amid US dollar weakness and inflation concerns.

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

Crude oil prices, meanwhile, jumped above $84 a barrel late on Thursday after production platforms in the Gulf of Mexico were shut down ahead of a threatened tropical storm.

The dollar hovered near a record low against the euro and a 15-year trough versus a basket of currencies as investors dumped the U.S. currency after the Federal Reserve surprised markets with a half-point rate cut earlier this week. The euro was at $1.3870 within sight of a record high of $1.4120 hit in this week trading.

Comments from Fed Chairman Ben Bernanke on Thursday that global financial losses stemming from disarray in the U.S. subprime mortgage market "far exceeded even the most pessimistic estimates" put more pressure on the dollar.

A weaker U.S. currency makes dollar-denominated metals cheaper for investors in other currencies, while gold is also seen as a hedge against oil-led inflation.

Gold spiked to a life-time high of $850 in January 1980 as high inflation linked to strong oil prices, Soviet intervention in Afghanistan and the impact of the Iranian revolution prompted investors to buy the precious metal heavily.

At this point, we are seeing quite strong investor interest in gold. If the U.S. dollar continues to edge lower against other currencies, then we think we will see continued support for gold.