Gold futures hit $1,700 an ounce on Wednesday after reaching almost 3 per cent in the previous session as investors and global markets await results if the eurozone leaders can indeed come up with a credible plan to end the euro zone debt crisis at a summit later in the day.

Gold futures for December delivery reached 2.9 per cent to settle at $1,700.40 on the Comex in New York Mercantile Exchange, after touching $1,704.70, its highest since Sept. 23. Prices are up 20 per cent this year.

The delays in addressing Europe's debt crisis and the growing concerns in the U.S. inflation have again triggered demand for the precious metal.

"Gold is getting support because there is a general consensus that there will be Fed-induced stimulus to support growth in U.S. at a time when Europe may go into recession because of the debt crisis," Paul Dietrich, the chief executive officer of Foxhall Capital Management Inc. told Bloomberg. "And that may be inflationary."

Gold is in its 11th year of a bull market when it sent prices to a record high $1,923.70 on Sept. 6. The precious metal has doubled since end of 2008 as global governments struggled with sovereign debt and an economic slowdown.

In London, the bullion rally is the longest since 1920.

Silver for December delivery grew $1.41, or 4.5 per cent, to $33.05 an ounce, also its highest close since Sept. 22.

January platinum gained $26.80, or 1.7 per cent, to $1,568.80 an ounce.

December palladium jumped $13.60, or 2.1 per cent, to $652.10 an ounce.