LONDON (Dow Jones)--Further dollar weakness is driving gold prices to further new highs Wednesday with the currency expected to continue to dictate direction in the immediate future despite concerns the gains are a little overdone. Spot gold is now trading at $1,115.65 a troy ounce, a 7.3% rise since the start of the month and a 39% hike since the beginning of January. The precious metal has long been regarded by investors as a good protection against depreciation in a currency's value, against both inflation and other currencies. It is widely considered to be a particularly effective hedge against fluctuations in the dollar, the world's main trading currency. Traders said the market is likely to try to take some profits at current levels, although corrections aren't expected to be steep.

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