Gold hit another all-time high on Wednesday on worries about future inflation and economic uncertainties, while Asian stocks rebounded as the generally bearish dollar kept riskier assets in demand.
Spot gold rose as high as $1,143.95 per ounce in early Asia trade, settling later just above $1,140, with expectations for a continued weakness in the US currency also providing a support.
The dollar rose as investors trimmed short positions after euro zone economic policymakers followed US Federal Reserve Chairman Ben Bernanke in commenting about the merits of a strong dollar, but dealers said the rebound would likely be limited.
"It's going to be hard for the dollar to gain further, since it looks like that the US will keep its low interest rate policy for a while," said Tomohiro Nishida, treasury department manager at Chuo Mitsui Trust and Banking Company in Tokyo.
