Gold hits record near $1,186/oz as dollar falls (by Laura Mandaro)

SAN FRANCISCO (MarketWatch) -- Gold prices extended their rise into record territory Wednesday, nearing $1,186 an ounce, as a sliding dollar bolstered investors' appetite for assets seen as more stable when paper currencies depreciate. Gold for December delivery rose as high as $1,185.90 an ounce in electronic trade on Globex. That's a $20.1 an ounce, or 1.7%, gain from the prior day's settlement. Gold got an lift ahead of the New York session after a newspaper said India's central bank may buy more bullion. For years, many central banks for years were net sellers of gold. "The fact that they've changed in sentiment, instead of selling gold are buying gold, has provided a huge lift to gold prices," said Suki Cooper, a precious metals analyst for Barclays Capital.