Gold closes at record high
The precious metal bounce back from an early bout of weakness as the dollar depreciates against other currencies.
NEW YORK (CNNMoney.com) -- Gold prices rose Friday to a record high, recovering from earlier losses, as the U.S. dollar weakened against rival currencies.
December gold rose $10.10 and settled at a record $1,116.70 an ounce after hitting a low of $1,105.00 earlier in the session. Gold fell Thursday to settle at $1,106.60 an ounce.
Gold prices have rallied to a series of record highs this week, hitting an all-time trading high of $1,123.40 early Thursday. Analysts said gold could continue to push higher if prices close above $1,100 on Friday.
The dollar succumbed to selling pressure at midday Friday after firming in early currency trading. The dollar index, which measures the currency's value against a basket of rivals, was down 0.3% to 75.33.
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.
Given the bleak outlook for the dollar, many analysts expect gold to continue rising into next year, albeit at a slower pace.
"We believe the outlook for gold prices remains bullish," analysts at Deutsche Bank wrote in a research report. "However, the speed of the appreciation over the past few weeks may be difficult to sustain without a further weakening in the U.S. dollar."