Gold Tops $1,018 on Continued Weak Dollar

Updated from 4:18 a.m. EDT

NEW YORK (TheStreet) -- Gold for December delivery was trading at $1,018.30 Wednesday after trading as high as $1,023.30 an ounce during the session on the back of the dollar's recent weakness.

The contract closed Tuesday above $1,000 for the third straight day, adding $5.20 to settle at $1,006.30 an ounce on the New York Mercantile Exchange. Gold has been rallying in recent days as the dollar falls against other major currencies. Gold is used as a hedge against a weak dollar and inflation.

Last week marked the first time a front-month contract on gold had traded above $1,000 in six months.

The euro touched a year high against the dollar Wednesday at $1.4695 from $1.4659 in New York on Tuesday. The euro recently was at $1.4676. The dollar fell to 90.29 Japanese yen from 91.10 yen.

-- Reported by Joseph Woelfel in New York .

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