Gold holds gains after push near $1,100

• By Ben Rooney, CNNMoney.com staff reporter
• On 8:54 am EST, Thursday November 5, 2009

Gold was modestly higher Thursday as the dollar firmed and investors took a step back following the metal's recent push near $1,100 an ounce.

December gold rose $3.70 to $1,091.10 an ounce in electronic trading after jumping as high as $1,095.20 an ounce earlier in the session.

The advance came as the dollar regained some ground against rival currencies on safe-haven demand. The greenback was up 0.4% versus the U.K. pound and was flat against the euro.

A stronger greenback makes commodities that are priced in dollars more expensive for holders of other currencies.

Gold surged to an all-time trading high of $1,096.20 an ounce early Wednesday as investors focused on the International Monetary Fund's sale of 200 metric tons of the metal to India's central bank.

The moved raised bets that more overseas central banks will increase their gold reserves and eased some concerns that such a large dose of supply would weigh on prices in the open market.

But the rally lost momentum after the Federal Reserve announced plans to hold interest rates near historic lows for an "extended period" despite signs of economic improvement.

Gold ended the previous session up $2.40 at $1087.30 an ounce.

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