RPT-PRECIOUS-Spot gold hits record above $1,050

(Repeats to additional subscribers)

* Gold seen staying strong while dollar remains weak

* Slow scrap selling suggests traders waiting for price gains

* SPDR Gold holdings XAUEXT-NYS-TT inch up for 2nd day

By Miho Yoshikawa and Lewa Pardomuan

TOKYO, Oct 8 (Reuters) - Spot gold topped $1,050 per ounce to
mark a record high for the third session in a row on Thursday as
the dollar's continued struggle made the precious metal more
attractive to investors.

Bullion has gained about 20 percent this year, helped by the
dollar's weakness and inflation worries after central banks and
governments across the globe poured money into the financial
system to help stimulate the economy.

Gold XAU= rose as high as $1,054.20 per ounce as of 0533
GMT.

The dollar is expected to continue to struggle, which is
likely to mean more gains for gold.

"Investors are turning towards gold as a hedge in dollar
weakness," said Adrian Koh, an analyst at Phillip Futures in
Singapore.

Further gains could be on hold for the rest of the day,
however, as investors await news that will provide clues to the
state of the global economy.

"Looking forward today, we have got a couple of key interest
rate announcements from the BOE and the ECB and traders are
likely to be cautious and will be keen to listen to what they
have to say about their respective economies," Koh said.

U.S. gold futures for December delivery GCZ9 were at
$1,054.4 per ounce, up 1 percent.

On the physical front, despite gold's rise to another record,
sales of scrap were limited in Asia, suggesting that consumers
were waiting for more gains in prices before cashing in.

"People don't want to sell at these levels. There isn't much
scrap coming in," said Ronald Leung, director of Lee Cheong Gold
Dealers in Hong Kong.

He said there was talk bullion could reach as high as $1,600.

"I think we are all bullish, but watch out for a correction."

Dealers also noted light buying by main consumer India,
keeping premiums for gold bars steady in the bullion trading
centres of Singapore and Hong Kong. <GOLD/ASIA1>

"Gold keeps testing new highs, so people have become more
cautious. But if the price maintains ... these levels, then I
think more scrap will enter the market," said a dealer in
Singapore.

"Don't be surprised, India is still buying," he said.

India, which accounts for more than 20 percent of global
demand for gold jewellery, is in the midst of the festival
season, a period when jewellery is traditionally purchased.

Gold's rally has boosted inflows into exchange-traded funds
for two days in a row.

The world's largest gold-backed exchange-traded fund, the
SPDR Gold Trust (GLD), said its holdings stood at 1,109.314
tonnes as of Oct. 7, up 0.8 percent or 8.8 tonnes from the
previous business day, when they also rose. [GOL/SPDR]

The dollar was again on the defensive on Thursday, after
Alcoa Inc (AA.N) posted a surprise profit, supporting overall
bullishness about a global recovery. [USD/]

Strong oil prices also fanned worries about inflation,
providing gold with additional fuel to help the rally.

Oil prices rebounded above $70 per barrel on Thursday,
recovering from the previous session when they fell after U.S.
data showed a surge in fuel stocks last week. [O/R]

PRICES

Precious metals prices at 0533 GMT
Metal Last Change Pct chg YTD pct chg Turnover
Spot Gold 1052.45 8.75 +0.84 19.58
Spot Silver 17.77 0.22 +1.25 56.98
Spot Platinum 1334.50 8.50 +0.64 43.19
Spot Palladium 313.00 2.00 +0.64 69.65
TOCOM Gold 2993.00 17.00 +0.57 16.32 51443
TOCOM Platinum 3796.00 -12.00 -0.32 43.14 8187
TOCOM Silver 504.80 9.30 +1.88 58.10 770
TOCOM Palladium 893.00 -4.00 -0.45 62.36 234
Euro/Dollar 1.4755
Dollar/Yen 88.16
TOCOM prices in yen per gram, except TOCOM silver which is
priced in yen per 10 grams. Spot prices in $ per ounce.
(Additional reporting by Chikako Mogi; Editing by Michael
Watson)