NEW YORK (Bloomberg) -- Gold rose to a record in New York, and silver extended gains to a 30-year high, on speculation that government spending and low interest rates to revive economic growth will weaken currencies and boost demand for precious metals as an alternative asset.

The dollar fell against the euro after a private report based on U.S. payrolls showed job losses in September. Gold futures have climbed 23 percent this year as central banks tried to revive economies through quantitative easing and lower interest rates, making the metal more competitive against bonds and cash. Unlike bonds, gold doesn’t pay interest.
“More quantitative easing means de facto lower interest rates, so gold becomes more competitive,” said Bayram Dincer, an analyst at LGT Capital Management in Pfaeffikon, Switzerland.
Gold futures for December delivery gained $4.80, or 0.4 percent, to $1,345.10 an ounce on the Comex in New York at 8:30 a.m., after earlier Wednesday rising to as high as $1,351. The metal climbed to the highest since at least 1971 in Canadian dollars and the most since June 21 in British pounds. Gold for immediate delivery advanced 0.3 percent to $1,344.95 an ounce, after earlier today touching an all-time high $1,349.80.
Employment decreased by 39,000 after a revised 10,000 gain in August, according to figures today from ADP Employer Services. The median estimate of 37 economists surveyed by Bloomberg News called for a gain of 20,000.
The Fed has kept the main interest rate between zero and 0.25 percent since December 2008 to revive the economy. The central bank also purchased $1.25 trillion in mortgage-backed securities in an effort to push down mortgage rates to support housing.
---------Silver Surges
The first U.S. quantitative easing translated into an 8 percent increase in gold prices 12 months later, according to Bank of America-Merrill Lynch. The second round of easing is estimated at $500 billion to $750 billion by the first quarter of 2011, according to Merrill Lynch.
Silver for delivery in December jumped as much as 1.6 percent to $23.09 an ounce on the Comex, the highest since Sept. 26, 1980. Platinum for January delivery climbed to $1,710 an ounce on the New York Mercantile Exchange, the most since May 17, and palladium rose to $594 an ounce, the highest since March 4, 2008.
Bullion has outperformed global equities and Treasuries this year, prompting record investment in gold-backed exchange- traded products. Yields on Treasury two- and five-year notes fell to record lows.
Gold assets in ETPs rose 0.6 metric ton to 2,094.9 tons as of Oct. 5, according to data compiled by Bloomberg from 10 providers. Holdings are up 17 percent this year and reached an all-time high of 2,097.01 tons on Sept. 30.
Holdings in the iShares Silver Trust, the biggest exchange- traded fund backed by the metal, climbed 94.32 tons to a record 9,877.20 tons as of Oct. 5, according to the company’s website.