Gold hits new record but falls back to $1,140

By Miho Yoshikawa

TOKYO (Reuters) - Gold prices inched up to touch another record high on Wednesday but then succumbed to profit-taking and fell back to $1,140 per ounce on the view that recent rises had gone too far too fast.

Although technical charts suggest bullion is overbought, market players said the precious metal's long-term strength is seen intact, with the dollar expected to remain weak and amid worries about inflation and an uncertain economic outlook.

Federal Reserve Ben Bernanke made a rare comment on Monday about the value of the dollar, drawing a link between its current weakness and inflation risks.

Some said buying momentum for gold was likely to slow ahead of next week's Thanksgiving holiday in the United States, and also now that prices have neared the $1,150 level, a key technical target seen likely to pave the way for $1,200.

"I think we will see the market taking a break with Thanksgiving almost here," said Kazuhiko Saito, chief analyst at Tokyo's Fujitomi Co Ltd, adding that it could be next month before another solid rally takes place.

Spot gold was at $1,137.70 per ounce at 0511 GMT, down 0.3 percent from the New York notional close of $1,141.50. It earlier touched a record $1,143.95 per ounce.

The dollar index hovered at around 75.26 after striking a 15-month low of 74.679 on Monday.

Gold has pierced record highs on eight of the past 12 sessions, during which it has risen more than 7 percent.