Gold hits record above $1,130/oz

By Risa Maeda

TOKYO (Reuters) - Spot gold hit a record high above $1,130 an ounce on Monday with investors cautiously preparing for the precious metal to advance towards the psychologically important $1,200 level as the U.S. dollar is expected to remain weak for now.

Investors maintained their appetite for bullion as a hedge against currencies as the greenback drifted lower in Asia and the euro edged up as rhetoric over China's yuan currency policy increased.

The United States and China sparred over exchange rates at a meeting of Asia Pacific leaders on Sunday, a move that quashed expectations that China may allow the yuan scope to rise in coordination with U.S. President Barack Obama's first trip to Beijing.

Spot gold was at $1,128.20 an ounce at 6:24 a.m., up 0.9 percent from New York's notional close of $1,118.50. It earlier rose as high as $1,130.25, an all-time high.

Gold has pierced record highs for 7 days out of the past 10 sessions, during which it has risen more than 6 percent. The previous record was $1,122.85 marked on Thursday.

U.S. gold futures for December delivery stood at $1,129.20 an ounce, up 1.1 percent from Friday's settlement. The contract had reached a new record high of $1,130.60.

The current uptrend looks sustainable because the market has not felt the "real euphoria" of a daily price jump of more than 3 percent, said Koichiro Kamei, managing director at financial research firm Market Strategy Institute in Tokyo

"The yellow light has been on but no red light has been seen on the current course to the $1,200 target since gold broke through above $1,000 in September," he said.