Gold futures on the COMEX Division of the New York Mercantile Exchange further hiked on Wednesday, buoyed up by sharp drop in U.S. dollar as well as intensified concerns over inflation. Silver gained more than one percent.
The most active gold contract for June delivery gained 3.8 U.S. dollars, or 0.25 percent, to close at 1,498.9 dollars per ounce.
Market analysts said that Wednesday's gold market mainly gained strength from weak dollar, as gold and the dollar tend to move in opposite directions. A lower dollar makes gold cheaper and therefore more attractive for investors holding other currencies.
The U.S. dollar index, which tracks the performance of the U.S. unit against six major currencies, hovered near its yearly lows in the recent trading. The index further declined to 74.465 on Wednesday, down from 75.038 late Tuesday.
Besides, worries of inflation aided gold's record run, as the crude-oil prices extended rally on Wednesday. Gold is considered the ultimate storer of wealth amid inflationary environment.
A trader expected that gold is likely to continue rise in the short term and meet the technical resistance around 1,600 dollars.
Other metals are also rising. Silver for May delivery added 54. 8 dollars on Tuesday, or 1.25 percent, to 44.461 dollars per ounce, refreshing the 31-year record. July Platinum also gained 31.5 dollars, or 1.8 percent, to 1802.8 dollars.
