Gold hits record above $1,167/oz

Spot gold was bid at $1,165.45 an ounce at 10:02 a.m., against $1,148.20 late in New York on Friday. U.S. gold futures for December delivery on the COMEX division of the New York Mercantile Exchange rose $19.10 to $1,165.90 an ounce.

Afshin Nabavi, head of trading at MKS Finance in Geneva, said the metal's rise through technical stops had triggered fresh buying.

"The way the market held the $1,130 support on Thursday and Friday was very impressive," he said. "It looks like $1,200 will be seen much sooner than expected."

The dollar extended broad losses on Monday, hitting a six-week low versus the yen after comments from a Federal Reserve official bolstered the view that U.S. interest rates will stay low.

Weakness in the U.S. unit boosts gold's appeal as an alternative asset and makes dollar-priced commodities cheaper for holders of other currencies.

Oil prices rose more than 1 percent to top $78 a barrel, after the U.S. dollar lost its footing and heightened tensions between key oil exporter Iran and Western nations raised speculation of a potential supply threat.

Strong oil prices raise the metal's safe-haven appeal against inflation.

POISED FOR GAINS

Technical analysts at Barclays Capital -- who study past price charts to determine trends in future trade -- said in a note that gold was poised for further gains.