Gold continued its run into record territory Wednesday as investors responded to the weak U.S. dollar and ongoing concerns that a bout of inflation may be brewing.
December gold was up $1.30 to $1,066.30 an ounce, after climbing overnight to another trading high of $1,072.00 an ounce.
Gold, which has gained more than 20% this year, was driven higher as the dollar fell to a 14-month low on speculation that U.S. interest rates will remain low for a longer-than-anticipated period of time.
The dollar index, which gauges the greenback's value against a basket of rival currencies, slid to a low of 75.45, marking its weakest level since August 2008.
The weak dollar also boosted oil prices, which rose above $75 a barrel for the first time this year.
A softer greenback makes commodities that are priced in dollars, such as gold and oil, cheaper for investors using other currencies.
Gold is also being supported by bets that government efforts to stimulate the economy could set the stage for inflation as the economy recovers.
The government is due to release Thursday its September Consumer Price Index.
The closely watched inflation gauge is expected to show an increase of 0.2% in September, compared to a 0.4% rate the month before, according to a consensus of economists surveyed by Briefing.com.
Consumer prices excluding volatile food and energy costs, the so-called core CPI, are expected to have risen 0.1%, the same rate of increase as in August.
The advance comes as global stock markets rallied to their highest levels in a year on upbeat U.S. corporate earnings and Chinese trade data. U.S. stock futures were also higher, suggesting that Wall Street is primed to surge at the open.
