SINGAPORE (Commodity Online) : Gold prices continued to trade higher in Asian trade Wednesday and likely to move further on weak dollar.

Spot gold was seen trading at $1106.24 an ounce at 11.30 a.m Singapore time after rose as high as $1109 an ounce earlier.



Spot gold reached an all-time high of $1,111.20 an ounce Nov. 9. on Tuesday, December gold rose $1.10 to settle at a record $1,102.50 an ounce.

Bullion remained in sight of a record high of $1,110.85 an ounce marked on Monday, and the dollar's persistent weakness on expectations that U.S. interest rates will likely stay low is expected to help gold rise further.

India's recent purchase of 200 tonnes of gold from the International Monetary Fund has also provided gold with support as it has kept the metal out of the market.

The question has now shifted to how and when the IMF will execute the transaction for the remaining planned gold sales.

The dollar slipped on Wednesday, but managed to avoid a break of recent 15-month lows against a basket of currencies as investors paused for breath after a recent spike in the euro and higher-yielders.

World Bank President Robert Zoellick said on Wednesday that the dollar's role as a reserve currency is intact, but the United States cannot take it for granted and needs to tackle its huge fiscal deficit.

Meanwhile, the world's largest gold-backed exchange-traded fund, SPDR Gold Trust , said its holdings stood at 1,114.443 tones as of Nov. 10, unchanged from the previous business day and at a level last seen in July.

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