U.S. gold futures spiked over $900 an ounce in New York on Thursday after the dollar dropped against the euro and boosted trader's appetite for the precious metal, also causing platinum futures to hit a new record.

Gold for February delivery rose $22.70 at $905.80 an ounce on the New York Mercantile Exchange. Earlier, the contract hit an intraday high of $911 an ounce.

Gold futures for February delivery surged $22.70, or 2.6 percent, to $905.80 an ounce on the Comex division of the New York Mercantile Exchange. Gold hit a high of $911.10 during intraday trading. Gold has gained 8.1 percent in January and set a new record of $916.10 an ounce on January 15.

Clear expectations that the Fed will cut once again next week, and keep cutting until some further signs of progress emerge, continue to fuel the precious metals, said Jon Nadler, an analyst at Kitco Bullion Dealers, in a research note.

On Wednesday, gold futures dipped $7.20 to end at $883.10 in a choppy trading session.

Given the turmoil across the financial markets, it's not surprising to see the precious metals remain extremely volatile as some investors cash in their positions to generate cash while others will look favorably upon gold as a safe-haven asset, said James Moore, a metals analyst at TheBullionDesk.com, in a research note.

Peter Grandich, editor of The Grandich Letter, said: Despite an onslaught of bearish forecasts and attempts to cap the market, gold continues to demonstrate it remains in a secular bull market. $1,000 is not a question of if, but when.

Meanwhile, platinum futures for April delivery spiked $53.90, or 3.5 percent, to $1,613 an ounce on the Nymex. Platinum broke a new record of $1,617.90, the highest ever during intraday trading. The previous record was $1,597.40 on January 14.

Platinum increased due to signs that output in South Africa, the world's largest producer, will decline.

In currencies, the dollar was down against most major counterparts after weaker-than-expected existing-home sales data was reported by the National Association of Realtors. The dollar index, which tracks the performance of the greenback against six other major currencies, lost 0.9 percent to 75.685.

A weak dollar encourages U.S. investors to turn to gold because the metal is considered a safe haven and will hold its value.

Precious metal Investment Gold