Gold jumped 3.3 percent, capping the biggest weekly gain since July 2006, as the dollar’s decline to a record against the euro and climbing energy costs sparked demand for the metal as a hedge against inflation.

The price of gold has surged 29 percent this year, and the dollar is down 10 percent to the lowest ever against a basket of six currencies, including the euro and the yen. Crude oil closed above $98 a barrel, and heating oil climbed to a record.

“With the dollar hitting all-time lows, it proves supportive for gold,” said William O’Neill, a partner at Logic Advisors in Upper Saddle River, New Jersey. “The basic uptrend in gold is going to continue.”

Gold futures for December delivery gained $26.10 to $824.70 an ounce on the Comex division of the New York Mercantile Exchange. The metal surged 4.8 percent this week, the most since the week ended July 14, 2006. The percentage gain today was the biggest for a most-active contract since Feb. 21.

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