Gold hits record above US$1,167 oer ounce as dollar slips

The dollar slid against the euro on Monday on concerns that the Federal Reserve may keep emergency stimulus measures in place for a while longer, helping push gold prices to a record high level.

In late morning trading here, the euro climbed to US$1.4977 from US$1.4860 late in New York on Friday.

Against the Japanese currency, the dollar fell to 88.88 yen from 88.92 yen late on Friday.

Comments by a U.S. Federal Reserve official that he would prefer to keep the central bank's asset-buying programme active beyond its current cut-off date pushed the dollar lower, analysts said.

Federal Reserve Bank of St. Louis President James Bullard said an extension of the program, widely considered a negative factor for the U.S. currency, would give more flexibility to U.S. policymakers.

"Central bank rhetoric provided fresh incentive," to drive up the euro, said Jane Foley, analyst at online trading firm Forex.com.

"Gold prices printed another fresh high on the back of dollar weakness with Bullard's comments promoting the discussion of medium-term inflation potential, though economic data continues to indicate a absence of price pressures," Foley added.

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