Gold, little changed, may gain as the US dollar weakens, boosting demand for the metal as an alternative asset.
Bullion for immediate delivery increased as much as 0.3 percent to $US1250.15 an ounce before trading at $US1247.70 an ounce.
“Gold will continue trying to break the record and once it breaks it, bullion will shoot up,” said Hwang Il Doo, a senior trader at Korea Exchange Bank Futures in Seoul. “Generally, sentiment remains bullish.”
The dollar traded near a two-week low versus the euro as data suggested the economic recovery is on track in the US and Europe, curbing demand for the greenback as a refuge. The dollar traded at $US1.2873 per euro, from $US1.2896 in New York last week, after earlier dropping to $US1.2902, the weakest since Aug. 19.
Bullion may advance to at least $US1300 an ounce this year as investors seek protection against weak currencies and inflation, London-based researcher GFMS said in August.
The metal climbed 0.7 per cent last week, the fifth straight gain, and is headed for a 10th straight annual increase, the longest winning streak since at least 1920.
Gold futures for December delivery were little changed at $US1249.20 an ounce in New York after rising as much as 0.3 per cent earlier.
Silver for immediate delivery fell 0.3 per cent to $US19.8263 an ounce. Platinum increased 0.6 per cent to $US1564.75 an ounce, while palladium was unchanged at $US529.75 an ounce.