(RTTNews) - Gold prices edged higher again on Thursday morning and continued to threaten the key $1,100 per ounce mark. A weaker dollar continued to spark the precious metal.

December gold rose to $1,090,60, up $3.30 for the session. Prices reached as high as $1,095.20 earlier in the session.

The dollar extended a nine-day low against the euro and continued to approach its lowest level in more than a year. The European Central Bank left its key interest rate unchanged at a record low for the sixth straight month in November,

On the economic front in the U.S., the Labor Department reported productivity increased by 9.5 percent in the third quarter following a revised 6.9 percent increase in the second quarter. Economists had expected productivity to rise by 6.5 percent compared to the 6.6 percent growth originally reported for the previous quarter.

A separate Labor Department report showed that jobless claims fell to 512,000 from the previous week's revised figure of 532,000. Economists had been expecting jobless claims to edge down to 522,000 from the 530,000 originally reported for the previous week.

Traders also reacted to the Federal Reserve's interest rate announcement, which was released after the close of floor trading yesterday. The Federal Open Market Committee said it was leaving its target for the federal funds rate at a range from zero and a quarter percent. The central bank also repeated its assessment that "exceptionally" low rates will continue for an "extended period."

Gold finished at a record closing level $1,087.30, up $2.80 on the session. The metal hit as high as $1,098.50 in electronic trading.

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