NEW YORK (TheStreet) -- Gold prices hit a new record high of $1,151 an ounce as the U.S. dollar weakened.
Gold delivery for December was rising $10.10 to $1,149.50 an ounce at the Comex division of the New York Mercantile Exchange. Gold prices rose as high as $1,151 and sank as low as $1,136.
Silver prices were rising 37 cents to $18.76 while copper was adding 4 cents to $3.15.
Gold prices came under pressure Tuesday as the U.S. dollar staged a mini rally but the precious metal bounced back as the correction prompted bargain hunting buying. Currently the U.S. dollar index was slipping .47% to $7.97 increasing gold's appeal as an alternative investment. Gold has now settled over the $1,134 support level for two consecutive trading days leading many analysts to predict another leg up.
"I think you're seeing the retail public able to invest in gold in a much more efficient way", says Brian Kelleher, senior vice president of ETF Securities. "And you're seeing some significant central bank buying. Last month we saw India buy 200 metric tons from the IMF." India now has 6% of its reserves in gold compared to the U.S. and Portugal which have 75% and 90% respectively. Central banks increase their gold reserves as needed regardless of cost. Some analysts believe this continuous demand will help support higher gold prices.
In mining stocks, Barrick Gold(ABX Quote) and Newmont Mining(NEM Quote) were trading at $45.10 and $52.82 respectively. Freeport McMoran Copper & Gold(FCX Quote) was rising almost 1% to $85.36. Shares of Yamana Gold(AUY Quote) were relatively unchanged at $13.18.
