Gold returns to near record high as dollar drops

SINGAPORE (Reuters) - Gold rose to its strongest in nearly two weeks on Tuesday, hovering within sight of last month's record, as the U.S. dollar dropped on data showing further evidence of an economic recovery.

But trading was expected to be light, with Japanese speculators away for a holiday.

FUNDAMENTALS

* Spot gold was quoted at $1,063.60 an ounce at 0042 GMT, up $4.45 from New York's notional close -- not far from a lifetime high of $1,070.40 struck on Oct. 14.

* U.S. gold futures for December delivery added $10.2 an ounce at $1,064.200 on the COMEX division of the New York Mercantile Exchange, within sight of last month's record of $1,072 an ounce.

* The International Monetary Fund said on Monday it sold 200 tonnes of gold to the Reserve Bank of India for a total of $6.7 billion as part of the global institution's plans to increase its lending resources.

* AngloGold Ashanti lowered its annual production target for the second straight quarter after suspending output at a South African mine for safety checks.

* In an interview with Reuters at the London Bullion Market Association conference, Anglo said it may accelerate closing its hedgebook if conditions are right.