Gold extended its record-breaking run on Wednesday while sugar and cocoa prices rallied strongly as further weakness in the US dollar supported sentiment towards commodity markets.

Gold hit $1,118.35 a troy ounce before easing back to $1,113.50, up 0.8 per cent on the day. The SPDR Gold Trust, the largest physically backed exchange-traded fund, reported that holdings increased 6.1 tonnes on Monday, indicating that investors are continuing to allocate funds to gold even at record price levels.