Gold hits record near $1,200/oz

Gold hit record highs at $1,198.70 an ounce in Europe on Tuesday as the dollar weakened against a basket of currencies after policy comments from the Bank of Japan, adding to strong investment demand for the metal.

Buyers have been cheered by the strength of gold's recovery after a fall to below $1,140 an ounce late last week, which was met by strong fund buying, traders said.

Spot gold was bid at $1,194.80 an ounce at 9:21 a.m., against $1,179.10 late on Monday.

U.S. gold futures for February delivery on the COMEX division of the New York Mercantile Exchange were up $14.10 at $1.196.40 an ounce, having earlier hit a record $1,200.50.