Gold hits a new all-time high price on dollar weakness

Demand for gold increases in the run-up to Christmas

The price of gold has hit a new all-time high, boosted by continued concerns about the weakening dollar.

Gold hit a record of $1,173.50 an ounce, up almost 2% from Friday close.

The expectation that US interest rates will remain low has put pressure on the dollar, making both gold and oil more attractive as an investment.

The price of US light crude oil was up more than $2 a barrel at one point on Monday, before falling back to end the day up nine cents to $77.56.

London Brent oil ended down 26 cents to $77.46 after earlier hitting $78.15 a barrel.

'Increasingly attractive'

Growing demand from emerging markets, particularly in Asia, is also helping to drive the price of gold higher.

Emerging market governments are looking to diversify their foreign exchange holdings and are buying gold as a result.

"Sentiment is very upbeat and gold is looking increasingly attractive," said Stefan Graber at Credit Suisse.

Analysts expect the price of gold to continue rising.

"It looks like $1,200 will be seen much sooner than expected," said Afshin Nabavi at gold bullion refiner MKS Finance.