Gold hit yet another record high Wednesday and the precious metal will remain high as long as interest rates in the U.S. remain low, traders and analysts said.
The rise Wednesday was driven by U.S. dollar weakness and analysts said currency will continue to dictate direction in the immediate future.
The dollar is under pressure after comments late Tuesday from a top U.S. Federal Reserve official indicated the Fed wouldn't stop the dollar's decline unless it becomes disorderly.
As of 0950 GMT spot gold was trading at $1,115.75 a troy ounce, having hit $1,117.40/oz, a 7.5% rise since the start of the month and a 39% hike since the beginning of January. Most-active December gold on the Comex division of the New York Mercantile Exchange was at $1,115.80/oz, having traded up to $1,117.80/oz.
Read more: 3rdUPDATE: Weaker Dlr Drives Gold To New High Above $1,115/Oz - WSJ.com