Gold hits record highs near $1,120


London - Gold hit record highs near $1,120 an ounce on Wednesday as a dollar index fell to 15-month lows, with expectations that a U.S. economic recovery will be erratic seen keeping American interest rates low for a while.

The metal is now poised for more gains, analysts said, with the weak dollar helping gold build on a rally that began last week after the IMF sold 200 tonnes of bullion to India's central bank, raising the prospect of more official sector buying.

Oil prices rose to near $80 a barrel as the effects of a weaker U.S. dollar trumped a report pointing to a rise in U.S. oil inventories.

Spot gold hit a high of $1,117.05 an ounce and was at $1,114.80 at 1154 GMT versus $1,105.30 late on Tuesday.

U.S. gold futures for December delivery on the COMEX division of the New York Mercantile Exchange rose $12.70 to $1,115.20 an ounce.

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Among other precious metals.

Spot Silver was bid at $17.59 an ounce against $17.32, tracking gold higher.

Platinum was at $1,365 an ounce against $1,349.50.

Palladium was at $336.65 against $331.50.

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