Gold advances near record on dollar, central-bank buys

Bullion is heading for a ninth consecutive annual gain and approaching US$1,100 an ounce for the first time as investors seek to protect their wealth from the threat of inflation and the debasement of the U.S. currency. The Reserve Bank of India bought 200 metric tons from the International Monetary Fund last month and Sri Lanka said it will continue buying the metal.

The Dollar Index, which measures the greenback's performance against six major currencies, lost 0.2%, extending its decline to 7%.

Gold for immediate delivery rose US$3.65, or 0.3 percent, to US$1,093.95 an ounce by 11:03 a.m. local time after earlier reaching US$1,096.38. The metal touched an all-time high of US$1,097.72 on Nov. 4.

December gold futures climbed 0.5 percent to US$1,094.60 an ounce on the New York Mercantile Exchange's Comex division.

Spot prices have gained 4.6 percent this week, the most since April. The metal advanced to US$1,095 in the morning “fixing” in London, an all-time high, from US$1,089 at Thursday's afternoon fixing. Some mining companies use fixings to sell production.

Among other precious metals for immediate delivery in London, silver rose 0.7% to US$17.53 an ounce. Platinum advanced 0.3% to US$1,360.50 an ounce and palladium was little changed at US$330.92 an ounce.

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