Gold $AU1,229.38 an oz and $39,525.60 a kilogram"Gold strike new...

Gold $AU1,229.38 an oz and $39,525.60 a kilogram

"Gold strike new high above $US1150

* Matt Whittaker
* From: Dow Jones Newswires
* November 19, 2009 7:13AM

GOLD futures topped $US1150 in New York today as buyers continued piling into the metal as an alternative to the US dollar.

The rally then eased but the metal nonetheless ended higher in a continuation of strong investor-led buying on anticipation of higher prices.
Participants keep moving money from the greenback into commodities and higher yielding currencies.

December gold futures rose $US1.80 to settle at $US1141.20 an ounce after easing from a most-active record of $US1153.40 on the Comex division of the New York Mercantile Exchange.

KEY COMMODITY PRICES: oil, gold, base metals, livestock and wheat

The metal pared gains after extending its record as participants booked profits, said Ralph Preston, senior market analyst with Heritage West Financial.

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"The market's catching its breath," Mr Preston said.

"Overall they look like they're trending higher."

While gold appears to be overbought and could be due for a pullback, "the fundamental story in gold is still bullish," said Michael Gross, broker and futures analyst with OptionSellers.com.

"We see corrective breaks as buying opportunities,” he said.

"The dollar being down enhances any buying."

In recent trading, the ICE Futures US dollar index was down 0.245 point at 75.124 points.

The greenback came under pressure as appetite for riskier assets remained elevated in the wake of Federal Reserve comments indicating interest rates could remain low until 2012 and reports showing falling housing starts and slightly rising consumer prices pointed to a slow economic recovery and tame inflation."