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Another day another record for gold, which got within a whisker of $1,188 an ounce on a weaker dollar and talk that India is planning to plunder the International Monetary Fund's gold reserves.

The December contract rose for the ninth day in a row, up $21.20 to $1,187 in New York, as largely positive US economic data had the dollar sharply lower against its major counterparts.

But it was a report in India's Financial Chronicle newspaper that got everyone excited. It said the country's central bank is in negotiations to buy over 201 tons of gold from the IMF.

India has been in buying mood lately, paying $6.7bn for 200 metric tons of the fund's gold at the start of the month. China is also thought to be preparing further acquisitions.

The decision by many central banks to turn from their traditional role as sellers of the yellow metal to buyers has given prices a huge boost.

There were gains elsewhere on the metal markets. Silver, platinum, palladium and copper all found plenty of support.

Oil prices also improved Wednesday, up 2.6%, on the dollar's dismal display and government data revealing US crude inventories rose less than expected last week.

The January contract added $1.94 to $77.97 a barrel on the New York Mercantile Exchange.

Data from the Energy Information Administration showed crude supplies increased by 1 million barrels in the week ended 20 November. Analysts were looking for a 1.4m barrel rise.