Gold Price Hits New High

NEW YORK (TheStreet ) -- Gold futures hit a new high of $1,118 an ounce as the U.S. dollar index slipped below its $75 support area.

Gold delivery for December was popping $13.48 to $1,116.30 at the Comex division of the New York Mercantile Exchange. In overnight trading, the contract rose to a high of $1,118.60 and fell to a low of $1,105.60. Tuesday Goldman Sachs predicted that gold could hit $1,200 by the end of the year.

Silver was rising 48 cents to $17.70 while copper was up 5 cents to $3.01.

Helping support high precious metal prices was positive global macroeconomic data. China reported better than expected industrial production and retail sales numbers, which increased investors' risk appetite. "The global economy has picked up much more strongly than anyone could have guessed in the beginning of the year", says Nicholas Brooks, head of research and investment strategy for ETF Securities.

"People are going out and buying more risk assets because they feel more confident about the world and many of them are using the dollar as a funding currency." The U.S. dollar index was recently falling .15% to $74.90, but many analysts are calling for a short term correction in gold and a rally in the dollar.

In mining stocks, Barrick Gold(ABX Quote) was adding 1.45% to $43.13 and Newmont Mining(NEM Quote) was rising 2% to $50.46.

Shares of Freeport McMoran Copper & Gold were higher by 1.80% to $82.57 while AngloGold Ashanti(AU Quote) was trading up 1.45% to $43.19.