Gold rallies to record high

By Humeyra Pamuk

LONDON (Reuters) - Gold shot to a record high on Wednesday as the dollar slipped to its lowest in more than a year and analysts predict further gains for the precious metal on the U.S. unit's persistent weakness.

Spot gold rallied to $1,115.85 an ounce and was at $1,114.65 an ounce by 8:35 a.m. versus $1,105.30 an ounce last quoted late in New York on Tuesday.

U.S. gold futures for December delivery rose 1.2 percent to $1,115.7 an ounce after hitting an all-time high of $1,116.3 an ounce.

"The dollar weakness is the main trigger this morning," said Wolfgang Wrzesniok-Rossbach, head of sales at precious metals house Heraeus.

The dollar slid to its lowest against a basket of currencies in 15 months on Wednesday, continuing its decline on the view U.S. interest rates will stay low for a long time.

U.S. investment bank Goldman Sachs said gold could rise to record highs in a range from $1,150 to $1,200 an ounce, driven by falling real interest rates and renewed buying interest by central banks.

"The general mood for gold is still positive in the aftermath of the India story. Fund managers, private investors seem to be bullish on gold," he said.

INDIA