Gold rises to near record high

By Frank Tang and Rebekah Curtis

NEW YORK/LONDON (Reuters) - Gold turned higher on Friday to trade within striking distance of its record high, as a lower dollar amid economic worries boosted bullion's appeal as a currency hedge.

A strong finish above key technical support $1,100 an ounce, driven by the dollar's decline and renewed central bank interest, should fuel further gains next week, traders said.

Spot gold was at $1,115.50 per ounce at 2:03 p.m. EST (7:03 p.m. British time), up from a late quote of $1,103.60 in New York on Thursday, when it rallied to a record high of $1,122.85.

U.S. December gold futures settled up $10.10 at $1,116.70 an ounce at the COMEX division of NYMEX.

"The rally is probably a function of continued concerns about the dollar going into next week," said James Steel, analyst at HSBC in New York. "Another surprise was the fact that gold was able to rally against weak crude prices," he said.

The dollar fell broadly after data showed U.S. consumer sentiment falling in early November to its weakest in three months.

The U.S. currency is still down about 7 percent so far this year, making commodities priced in the greenback cheaper for holders of other currencies and boosting gold's price prospects.

"The only thing that seems likely to puncture this would be a reversal in the dollar, but it's still on a clear downward trend," said Stephen Briggs, a commodities strategist for RBS in London, adding there was a "uniformity" in the market's view that the dollar would weaken further.