LONDON (Bloomberg) - Gold advanced to a record in New York as concern that some European governments may struggle to raise funds and a weaker dollar boosted demand for bullion. Silver reached a 30-year high of more than $28 an ounce.

The euro rebounded against the dollar after earlier sliding on concern debt-stricken nations will struggle to repay bondholders and spending cuts will stifle growth in the region. The greenback fell to a nine-month low last week as the Federal Reserve said it will purchase more debt. Gold usually moves inversely to the dollar.

"Market participants are turning their attention back to troubles in the euro zone," said Andrey Kryuchenkov, an analyst at VTB Capital in London. "Gold is still strongly inversely correlated to the dollar, but this could well weaken should euro zone-debt concerns escalate."

Gold futures for December delivery added $14.80, or 1.1 percent, to $1,418 an ounce at 8.01am on the Comex in New York after reaching $1,422.10. The metal for immediate delivery in London was 0.6 percent higher at $1,418.25 after reaching a record $1,422.35.

Bullion rose to $1,416.25 an ounce in the morning "fixing" in London, used by some mining companies to sell output, from $1,388.50 at Monday's afternoon fixing. The euro was last up 0.3 percent versus the dollar, erasing a decline of as much as 0.7 percent.

Gold is up 29 percent this year and is heading for a 10th annual gain, the longest winning streak since at least 1920 in London, partly on demand for an alternative asset to protect against the debasement of currencies. The Fed last week said it will buy an additional $600 billion of Treasuries through June to spur growth.

"Support will come from the Fed's decision to implement quantitative easing, increasing sovereign debt woes" and technical price momentum, Tom Pawlicki, an analyst at MF Global Holdings Ltd. in Chicago, said in a report. "The potential that the dollar maintains its upside rebound" and the end of an Indian religious festival may pressure gold prices, he said.

European Union Economic and Monetary Affairs Commissioner Olli Rehn is in Ireland today to examine the country's budget after the government in Dublin laid out a plan last week to cut spending and raise taxes by as much as six billion euros ($8.3 billion) in 2011. Concern that Greece may go bankrupt earlier this year helped gold advance to a then-record.

Gold climbed to the highest level priced in euros and Swiss francs since June 28, and the highest price in British pounds since at least January 2000, data compiled by Bloomberg show.

Gold assets in exchange-traded products added 4.33 metric tons to 2,090.18 tonnes yesterday, according to data compiled by Bloomberg from 10 providers. Holdings increased for the first time in 15 days on November 4 and reached a record 2,104.65 tonnes on October 14. Silver assets gained 39.9 tonnes to 14,269 tonnes, data from four providers show.

Silver for December delivery in New York earlier today reached $28.57 an ounce, the highest price since March 1980, and was last up 3.5 percent at $28.38. Prices are up 68 percent this year. Silver reached an all-time high of $50.35 in New York in 1980, a year after the Hunt brothers tried to corner the market.

"We can't fight the current momentum," UBS AG analyst Edel Tully said yesterday in a report, adding that her one-month estimate is now $30 and her three-month outlook is $27.

"The speed of silver's rally makes it look vulnerable to a setback. Don't fight the trend, but be careful."