Gold rose to within striking distance of its record high on the last trading day of 2007, helped by safe haven buying prompted by concerns about the deteriorating political situation in Pakistan following the assassination of Benazir Bhutto on Thursday.

Gold reached a session high of $843.20 a troy ounce on Monday, the highest level since January 1980, when bullion reached a record $850 during a period of intense geo-political tensions including the US hostage crisis in Iran and the Soviet Union’s invasion of Afghanistan.