Gold shot to a record high on Wednesday as the dollar slipped to its lowest in more than a year and analysts predict further gains for the precious metal on the U.S. unit's persistent weakness.

Spot gold rallied to $1,115.85 an ounce and was at $1,114.65 an ounce by 0835 GMT (3:35 a.m. EST) versus $1,105.30 an ounce last quoted late in New York on Tuesday.

U.S. gold futures for December delivery rose 1.2 percent to $1,115.7 an ounce after hitting an all-time high of $1,116.3 an ounce.

The dollar weakness is the main trigger this morning, said Wolfgang Wrzesniok-Rossbach, head of sales at precious metals house Heraeus.

The dollar slid to its lowest against a basket of currencies in 15 months on Wednesday, continuing its decline on the view U.S. interest rates will stay low for a long time.

U.S. investment bank Goldman Sachs said gold could rise to record highs in a range from $1,150 to $1,200 an ounce, driven by falling real interest rates and renewed buying interest by central banks.

The general mood for gold is still positive in the aftermath of the India story. Fund managers, private investors seem to be bullish on gold, he said.


India's recent purchase of 200 tonnes of gold from the International Monetary Fund has also given gold 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.

A former senior foreign exchange official in China, which was seen by some as the most likely buyer of IMF's gold, said this week the country should not rush to buy the metal from the IMF but should wait for the price to drop from a record.

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.

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

Spot silver was at $17.52 per ounce, compared with $17.32 last quoted in New York late on Tuesday.

Spot platinum was at $1,366.50 per ounce, up from $1,349.50, while palladium was at $336.25 versus $331.50.

(Additional reporting by Miho Yoshikawa, Editing by Sue Thomas)