Gold finished about $2 higher on Wednesday as a decline in the value of the dollar boosted the appeal of the precious metals as alternative investments.

The price of gold is up 17 percent this year, heading for the seventh straight annual gain as the dollar dropped to the lowest ever against the euro.

Gold futures for December delivery rose $2.90, or 0.4 percent, to $746 an ounce on the Comex division of the New York Mercantile Exchange. The metal reached $755.70 on Oct. 1, the highest for a most-active contract since Jan. 22, 1980, the day after the price reached a record $873.

The dollar fell as currency investors worried that the Fed may cut interest rates again to boost the economy, after the Federal Reserve disclosed the minutes from its September meeting late on Tuesday.

Though minutes from the Fed's September meeting, at which the Fed cut rates by half a percentage point, revealed little inclination to cut again this month, investors feared signs of slower growth would force the central bank's hand by year-end.

A cut in interest rates is often seen as a negative factor for the dollar as investors turn to alternative assets, such as gold, to park their money.

Investment Security Gold