Dec. 30 (Reno Nevada News - Bloomberg) -- Gold in New York gained for the sixth straight session on investment demand for alternatives to stocks and bonds, capping the precious metal's biggest annual gain since 2003.

``Gold is a hot commodity now, so more people, especially large hedge funds, are paying attention,'' said Billy Flahive, a trader at Island Trading Group in New York.

Gold has gained 18 percent this year, poised for the fifth straight annual gain. The metal headed for the biggest quarterly gain since September 2003. Net-long positions, or bets prices will rise, had reached the highest since at least 1983 on the Comex division of the New York Mercantile Exchange.

Gold futures for February delivery rose $1.10, or 0.2 percent, to $518.60 an ounce at 10:53 a.m. on the Comex. Prices jumped 4.5 percent in the previous five sessions. The metal reached a 24-year high of $544.50 on Dec. 12.

A futures contract is an obligation to sell or buy a commodity at a set price by a specific date.

Gains in gold this year have reflected a broader interest in commodities, traders and analysts said.

Commodity prices, led by energy and metals, reached a 25-year high in early September as pension funds, hedge funds and investors poured more money into raw materials. The Reuters-Jefferies CRB Index of 19 commodities has climbed 17 percent this year, and the energy-weighted Goldman Sachs Commodity Index has gained 37 percent.

``There's a wider community investing in commodities,'' said Tom Boustead, an analyst at Man Financial Inc. in New York. ``You're seeing a lot of investors shift into gold.''

Equities Lag Behind

The Standard & Poor's 500 Index has climbed 3 percent this year, and the Dow Jones Industrial Average was little changed. The benchmark 10-year Treasury returned 2.1 percent through yesterday, including interest payments and price change, according to Merrill Lynch & Co.

Gold has climbed in all currencies this year, paced by a 36 percent gain valued in yen and euros. Gold, which traditionally moved in the opposite direction of the dollar, has gained even as the U.S. currency climbed 15 percent against the euro.

The metal's rally in the past five sessions may trigger a drop in prices, some analysts said. Gold opened lower this morning.

``A rally such as we've witnessed in the past week needs a correction,'' said Dennis Gartman, economist and editor of Suffolk, Virginia-based Gartman Letter. ``The market shall be healthier in the new year because of it.''