Gold futures rose to a new record on Monday, closing above $900 an ounce for the first time following a dip in the dollar, which increased demand for the precious metal as an investment alternative.

Gold futures for February delivery ended up $5.70, or 0.6 percent to close at $903.40 an ounce on the Comex division of the New York Mercantile Exchange. It surged to an all-time high of $915.90 an ounce earlier in the day.

The dollar index, which tracks the value of the greenback against a basket of other major currencies, fell to as low as 75.36, the weakest in six weeks. The dollar dipped as traders increased bets that the Federal Reserve will lower U.S. interest rates to avoid a recession in 2008. Overall, Gold has gained 8.3 percent this year and the dollar has dropped more than 1.9 percent against the euro to a seven-week low.

The market is still extremely bullish,'' said James Moore, an analyst at in a research note. With the U.S. potentially cutting interest rates while those in Europe stay firm, the dollar looks set to add additional upside momentum.''

Gold topped $900 an ounce on Friday for the first time but that record was toppled today with a new record of $915.90 an ounce during intraday trading. The metal for immediate delivery rose $7.20, or 0.8 percent, to $902.60 at 1:59 p.m. in New York.

High crude-oil prices also helped gains in gold prices. February crude-oil futures rose for the first time in four days, up $1.51 to $94.20 a barrel.