Gold hit a record high at $1,170.55 an ounce on Monday as dollar weakness pushed the metal through key technical resistance levels, fuelling momentum buying after the metal's sharp run higher earlier this month.
Spot gold was bid at $1,168.90 an ounce at 8:14 a.m. EST (1418 GMT), against $1,148.20 late in New York on Friday. U.S. gold futures for December delivery on the COMEX division of the New York Mercantile Exchange rose $22.50 to $1,169.30 an ounce.
"Gold has a lot of momentum. It is trading off the back of the dollar, and at the moment it seems to be outperforming that trade, as are a lot of other commodities," said Daniel Major, an analyst at RBS Global Banking & Markets.
The precious metal has rallied to a series of record highs since news that India bought 200 tons of gold from the IMF broke in early November. Since then a number of other central banks have announced they too are buying gold.
"The main supportive factor outside of the dollar has been various actions by central banks -- obviously the buying by India, and since then there has been Russia, and Mauritius," said Major.
The dollar fell broadly on Monday, sliding nearly 1 percent against a basket of six other currencies, after dovish comments from a U.S. Federal Reserve official reinforced the view that U.S. interest rates will stay low for an extended period.
Weakness in the U.S. unit boosts gold's appeal as an alternative asset and makes dollar-priced commodities cheaper for holders of other currencies.
Oil rose more than 2 percent to above $79 a barrel. Strong oil prices raise the metal's appeal as an inflation hedge. For a graphic on gold, oil and dollar's performance, click on:
Gold priced in currencies other than the dollar were also reaching historic highs on Monday, with gold priced in euros rising to a nine-month peak of 780.21 euros an ounce, within 15 euros of a record high.
Sterling-priced gold reached a record high of 704.78 pounds an ounce, while gold denominated in Japanese yen rose to a historic peak of 103,788 yen an ounce, according to Reuters data going back to 1987.
Elsewhere, options traders are betting gold will hit $1,200 an ounce or higher by early next year. Strong options interest could in turn lift underlying prices further into uncharted territory.
On the physical side of the market, Indian gold buying cooled after picking up slightly last week as prices hit record highs and the flow of scrap eased, dealers said.
Gold's gains lifted other precious metals, with platinum hitting its highest since September 2008 at $1,472.50, and silver its strongest since July 2008 at $18.88 an ounce.
Spot platinum was later at $1,467.50 an ounce against $1,441, while palladium was at $368.50 against $361. Spot silver was bid at $18.80 an ounce against $18.46.
ETF Securities said holdings of its platinum- and palladium-backed exchange-traded commodities rose to record highs on Friday.
However, both ETF Securities and Zurich Cantonal Bank said the holdings of their gold-backed exchange-traded products dipped last week.
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