The precious metal pushes to another intraday high as the dollar slumps and investors remain concerned about inflation.
NEW YORK (CNNMoney.com) -- Gold rallied to a an all-time high early Thursday as the dollar continues to deteriorate and investors remain concerned that a bout of inflation is on the horizon.
December gold was up $10 to $1,054.40 an ounce, after surging to a high of $1,059.60 earlier in the session. The precious metal closed at a record high Wednesday of $1,044.40 an ounce on Wednesday.
Analyst expect the streak to continue, saying prices could top $1,100 an ounce by the end of the year.
The rally comes as the dollar slumped after better-than-expected quarterly earnings from aluminum producer Alcoa (AA, Fortune 500) after the market closed Wednesday boosted the market's appetite for risk.
The dollar was down 0.5% versus the euro and lost 0.7% against the British pound. The dollar index, which measures the buck against a basket of currencies, has declined 10% since March.
Many investors think the dollar will continue to depreciate as the nation's budget deficit explodes and investors flock to higher yielding currencies amid sings of a global economic recovery.
Gold is also being supported by persistent concerns that government efforts to stimulate the economy will cause inflation to rise in the future. Precious metals are seen as a hedge against rising prices because they store value better than other types assets.
Traders say the rally has been fueled by large investment funds that typically trade based on momentum. However, some say the market is ripe for a correction given the strength of the recent push.
