Gold retreats from record high
The precious metal falls after hitting another all-time high overnight as the dollar recovers.
NEW YORK (CNNMoney.com) -- Gold fell Thursday, after climbing to a record high overnight, as the dollar rose against rival currencies and stock prices fell.
December gold slipped $8.00 and settled at $1,106.60 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.
The retreat came as the dollar recovered from earlier losses amid ongoing concerns about the U.S. economy and speculation that overseas central banks could move to prop-up the beleaguered greenback.
The dollar index, which gauges the currency's value against a basket of rivals, was up 0.6% to 75.60. Despite the recovery, however, the index remains near a 15-month low.
Gold, which has gained about 6% this month, has been supported recently by concerns about the weak dollar.
A softer greenback makes gold, which is priced in dollars around the world, cheaper for buyers using stronger currencies. The weak dollar has also raised expectations that overseas central banks will move to increase their gold holdings as an alternative to the U.S. currency.
But the dollar's strength on Thursday, along with a selloff in the stock market, weighed on the precious metal, said Adam Klopfenstein, senior market strategist at commodities brokerage firm Lind-Waldock.
"The market is failing to find a bullish theme for the day," he said. "I expect gold to maintain negative posture for the rest of the afternoon, but I don't expect a major selloff given the magnitude of this week's move."
Gold 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.