Gold soars to record high

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The precious metal continues its rally above $1,100 as the dollar remains week.


NEW YORK (CNNMoney.com) -- Gold continued its rally and set a record high Tuesday as the dollar remained weak despite rising from a 15-month low hit in the previous session.


December gold rose $1.10 to settle at a record $1,102.50 an ounce.
"Investors are still interested in gold because of a weak dollar, weak economic conditions and concerns over the financial markets," said Carlos Sanchez, precious metals analyst at CPM Group.


The dollar recovered Tuesday from a 15-month low hit in the previous session, but analyst said the greenback will remain soft as the Federal Reserve holds interest rates near zero into next year.



In a jittery economy, commodities priced in dollars, such as gold, are perceived as safe haven investments and typically gain ground with a weaker dollar.



Gold surged 5% last week on speculation that central banks around the world will begin buying more of the precious metal as an alternative to the dollar, which is the traditional global reserve currency.



Gold has jumped more than 23% this year, and the rally is expected to continue into next year given the outlook for continued weakness in the dollar.



Sanchez expects gold to continue its run, mounting to $1,150 an ounce later in November, and $1,200 as the year ends.