Gold rose, extending a rally to the highest price since January 1980, as the declining value of the dollar and surging energy costs boosted the appeal of the precious metal as an alternative investment. Silver also gained.

Gold’s 15 percent jump in the third quarter is the most since 1999, when bullion rallied from a 20-year low. Oil traded near a record high today, and the dollar fell to the lowest ever against the euro for the seventh straight session. Gold has rallied in five of the past six bear markets for the U.S. currency.

“There’s a lot of reasons why you want to have gold in your portfolio,” said Paul McLeod, vice president of the precious-metals department at Commerzbank Securities in New York. “People don’t want to own the dollar, and inflation is building.”

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