NEW YORK (MarketWatch) -- Gold slumped for a second session Thursday, with weakness in U.S. equities helping the dollar rebound from a 14-month low against the euro, reducing the precious metal's appeal as a hedge against the weaker currency.

Gold also fell as some investors questioned whether the metal's recent rally has been overdone, analysts said. Gold has gained in seven of the past 10 sessions and has rallied nearly 20% this year.

Gold futures for October delivery lost $10.50, or 1%, to $1,053.10 an ounce on the Comex division of the New York Mercantile Exchange. The more actively traded December contract lost $11.90, or 1.1%, to $1,052.90 an ounce.