London, December 03: Gold hit record highs in the $ 1198.70 an ounce in Europe on Tuesday as the dollar weakened against a basket of currencies in the wake of comments from the Bank of Japan policy, adding to strong investment demand for metal.
Buyers have been encouraged by the strength of the recovery of gold, after a correction to less than $ 1140 an ounce last week, he was greeted by strong fund buying, traders said.
Gold was bid at $ 1194.80 an ounce by 0921 GMT, against $ 1179.10 on Monday night.
U.S. Gold futures for February delivery on the COMEX division of the New York Mercantile Exchange rose $ 14.10 to $ 1.196.40 an ounce, having earlier hit a record $ 1200.50.
–Agencies