LONDON (Commodity Online) : Gold created a new all-time record Monday when it crossed the coveted $1130 mark mainly on fund buying of the precious metal amid weak dollar.

Spot gold was seen trading at $1130.62 an ounce at 4.00 p.m Indian time in London after hitting as high as $1132. 95 an ounce earlier.

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U.S. gold futures for December delivery on the COMEX division of the New York Mercantile Exchange rose $14.20 to $1,130.90. Earlier they hit a record high $1,133.50.

In India, gold traders shied away from fresh buying as sellers find it more comfortable as the metal hit record highs.

On the Multi Commodity Exchange of India (MCX), December contract ended at Rs 16,881 per ten grams, up Rs 81 from the previous close.

A weak US currency makes metals priced in dollars less expensive for holders of other currencies.

Further weakness in the dollar could fuel further buying of the precious metals, as funds turn to hard assets as an alternative to the U.S. currency.

The dollar index slipped as traders sold the U.S. unit in response to a lack of agreement over currencies at a summit of the Asia Pacific Economic Cooperation (APEC) forum in Singapore at the weekend.

Weakness in the U.S. currency lifted other commodities, with oil prices climbing more than $1 a barrel and base metals rising. Gold often tracks crude prices, as it can be bought as a hedge against oil-led inflation.

However, higher prices hit demand for physical gold with the world's largest gold exchange-traded fund, the SPDR Gold Trust , saying its holdings fell 0.61 tonnes on Friday from the previous day.

The world's largest silver-backed exchange-traded fund, the iShares Silver Trust , said its bullion holdings rose 30.56 tonnes, or 0.3 percent, on Friday from the previous business day to a record 8,954.08 tonnes.

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