Gold hits record on weak dollar

Spot gold hit a lifetime high on Monday, extending a record-breaking rally to its seventh consecutive session, buoyed by a weak dollar that languished around its three-year low amid fresh tension in the Middle East and North Africa.

The dollar extended losses against a basket of currencies from the previous session to three-year lows, and might look to test an all-time low.

"It's the dollar play," said a dealer based in Singapore.

"People are now looking at USD 1,515 to USD 1,520, so there is more room for prices to go even higher."

Spot gold rose to a record high at USD 1,513.70 an ounce, but eased to USD 1,512.24 by 0108 GMT.

US gold futures also arched to a record high, at USD 1,514.50 an ounce. It was trading at USD 1,513.

The escalated violence in Syria and Yemen over the weekend also helped lift gold, seen as a safe haven during time of turmoil.

US silver futures rose to a 31-year high of USD 47.87 an ounce, and eased to USD 47.76.

The Relative Strength Index on the most-active US silver futures contract rose above 90, its highest level in five years, suggesting the market has been heavily overbought.

Financial markets in Hong Kong and Australia remain closed on Monday.