Gold Prices Soar

NEW YORK (TheStreet) -- Gold prices hit a new record high of $1,153 an ounce Wednesday, as the U.S. dollar weakened.

Gold for December delivery recently was up $3.30 to $1,142.70 an ounce at the Comex division of the New York Mercantile Exchange. Gold prices rose as high as $1,153 and sank as low as $1,136.

Silver prices were rising 9 cents to $18.48 while copper was up fractionally to $3.11.

Gold prices came under pressure Tuesday as the U.S. dollar staged a mini rally, but the precious metal bounced back as the correction prompted bargain hunting buying. Currently the U.S. Dollar Index was adding 0.6% to $75.27 increasing gold's appeal as an alternative investment. Gold has now settled over the $1,134 support level for two consecutive trading days leading many analysts to predict another leg up.

"I think you're seeing the retail public able to invest in gold in a much more efficient way", says Brian Kelleher, senior vice president of ETF Securities. "And you're seeing some significant central bank buying. Last month we saw India buy 200 metric tons from the IMF." India now has 6% of its reserves in gold compared to the U.S. and Portugal which have 75% and 90% respectively. Central banks increase their gold reserves as needed regardless of cost. Some analysts believe this continuous demand will help support higher gold prices.

In mining stocks, Barrick Gold(ABX) and Newmont Mining(NEM) were trading lower at $42.85 and $52.57, respectively. Freeport McMoran Copper & Gold(FCX) was losing 1.8% to $83.81. Shares of Yamana Gold(AUY) were relatively unchanged at $13.20.