Gold up 1 pct on dollar, crude; targets $1,000
By Atul Prakash and Anna Ringstrom
LONDON (Reuters) - Gold prices rose more than 1 percent on Wednesday as a record low dollar and soaring oil prices triggered bullion buying, analysts said.
Gold rose to $981.90/982.70 an ounce by New York's last quote at 2:15 p.m. EDT (1815 GMT) from $971.00/971.80 in New York late on Tuesday, when it fell on a dollar rally after central banks announced plans to boost liquidity. During the session, gold rose as high as $982.00.
"The dollar weakness has helped gold prices," said David Thurtell, analyst at BNP Paribas, adding prices probably would find support around $970-$975 until release of U.S. retail sales and CPI data on Thursday.
"With the market turmoil and the dollar weakness, chances are good that prices can reach $1,000," he said.
The dollar slumped to record lows against the euro and major currencies amid uncertainty about the long-term impact of recent Federal Reserve efforts to boost credit markets.
A weaker dollar makes gold cheaper for holders of other currencies and often lifts bullion demand.
Gold also is seen as a hedge against oil-led inflation. U.S. crude futures settled up $1.17 to $109.92 a barrel, after hitting an all-time high of $110.20 during the session.
Daniel Hynes, metals strategist at Merrill Lynch, said the outlook for gold remained bullish. Continued...





