For the second consecutive day, the prices of Gold recorded a rise, on the back of a weaker US Dollar, which managed to fuel the demand for the metal even further.

As much as 0.6% rise was recorded by Gold, while the Dollar Index, which tracks the value of the US currency against 6 of its major trading partners, declined by 0.2%. Last week, the price of Gold recorded a drop for the third straight week, hitting the lowest figure recorded since November 06, and the Dollar bounced back.

While the price drop led to "enticing some buyers back", according to Hwang Il Doo, a Senior Trader with KEB Futures Co. in Seoul, what really weighed "heavily on traders’ minds is a bounce in the dollar, which may cap any strong gains".

For immediate delivery, the precious metal rose as much as $6.49 to $1,119.69 per ounce, and began trading at a new high of $1,115.28 at 11:20 a. m. in Singapore. For February delivery, the metal in New York managed to rise by 0.8% to $1,120.80. The last recorded value was $1,117.30 an ounce.

"Gold prices have obviously come under the pressure on the dollar’s reversal. The dollar will continue to be the primary driver", said Toby Hassall, an Analyst with CWA Global Markets Pty Ltd. in Sydney.