LONDON, Jan 10: Gold softened in choppy trade on Thursday but held near record highs, with dealers expecting the market to undergo a period of consolidation before hitting the $900 an ounce target.

Spot gold fell to $874.25/875.00 an ounce after rising as high as $883.60, against $877.70/878.50 late in New York on Wednesday, when it rose to a record high of $891.40.

Gold prices appear to be largely taking their direction from dollar movements and investment demand is likely to continue to underpin prices, Suki Cooper, precious metals analyst at Barclays Capital. said.

Safe-haven buying, triggered by inflationary concerns, geopolitical tensions and broader market concerns, has the potential

to buoy prices further in the forthcoming weeks, she said.

—Reuters