Gold rose to the highest price in almost 18 years in New York as an industry report showed investors are seeking alternatives to U.S. and European currencies, stocks, and bonds, reports Bloomberg News.

Demand for gold coins, bars, and bullion-backed shares rose 56 percent in the third quarter, the World Gold Council reportedly said Wednesday. Gold sold in dollars has rallied 11 percent this year, heading for a fifth-straight annual gain, as concern about quickening inflation grew and jewelry purchases increased.

Gold for December delivery rose $7.80, or 1.6 percent, to $486.90 on the Comex division of the New York Mercantile Exchange, the highest close since January 1988, Bloomberg reports. The precious metal has climbed 3.7 percent during the first three days of the week, even as the U.S. currency approached a two-year high against the euro.

Gold last climbed above $500 an ounce on Dec. 11, 1987.

JCK