The precious metal jumps to another record overnight, but the rally fades as the U.S. dollar regains some ground.
NEW YORK (CNNMoney.com) -- Gold pushed higher early Thursday morning, extending a record-breaking run that has driven the precious metal up nearly 6% this month.
December gold was up $1.20 to $1,115.80 an ounce after climbing to a record $1,123.40 overnight. Gold closed at an all-time high of $1,114.60 an ounce Wednesday.
Gold rallied as the dollar slumped against the euro, with the 16-nation currency testing the $1.50 level in early currency trading.
But gold's gains were tempered latter in the session as the dollar regained ground against rivals. At 6:30 a.m. ET, the dollar was up 0.3% versus the euro at $1.4955.
A softer greenback makes gold, which is priced in dollars around the world, cheaper for buyers using stronger currencies. The weak dollar has also fueled speculation that overseas central banks will move to increase their gold holdings as an alternative to the U.S. currency.
Gold, which is up more than 25% this year, has been on a tear since prices rose firmly above $1,000.00 an ounce last month. Analysts say the metal's recent strength has attracted many short-term market participants who trade largely based on momentum.
Given the bleak outlook for the U.S. dollar, however, many analysts say gold will continue to rise into next year.
