Gold inches up to mark all-time high

Tue Nov 17, 2009 7:16pm EST

* Dollar weakness remains support for gold

* SPDR Gold holdings unchanged

TOKYO Nov 18 (Reuters) - Gold prices inched up to touch another record high on Wednesday as inflation worries and economic uncertainties continued to encourage buying.

The view that the dollar will remain weak is a key support that is helping gold stay above $1,130 per ounce, analysts say.

Spot gold XAU= rose as high as $1,143.95 per ounce as of 0001 GMT, up 0.2 percent from the New York notional close of $1,141.50.

U.S. December gold GCZ9 jumped to as high as $1,144.70, after settling up 20 cents at $1,139.40 in New York.

Gold is seen as a hedge against inflation, which erodes the value of paper assets.

The precious metal inched up in New York on Tuesday as worries about long-term inflation more than offset a stronger dollar.

The International Monetary Fund said it sold two tonnes of gold to the central bank of Mauritius at prevailing market prices on Nov. 11. [ID:nLH584805]

The report follows news that the IMF sold 200 tonnes of gold to India early in November, a factor that drove gold prices to record highs above $1,100.

The world's largest gold-backed exchange-traded fund, SPDR Gold Trust (GLD), said its holdings stood at 1,113.833 tonnes as of Nov. 17, unchanged from the previous business day. [GOL/SPDR] (Reporting by Miho Yoshikawa; Editing by Edwina Gibbs)

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