Gold rose on dollar weakness and record oil prices but the outlook for the precious metal was uncertain amid global market turmoil which could spark further rounds of risk aversion and liquidation.

Dollar weakness, with the greenback near a record low against the euro, boosted the appeal of dollar-priced commodities, while high oil prices at almost $120 per barrel ratcheted up inflation jitters.

'Higher crude oil prices should lift near-term global inflation expectations however, near-term investment fund flows could be blocked by heightened investor risk aversion,' said Standard Bank analyst Walter De Wet.

Gold, while up on the day, is some 10 percent lower than a record above $1,000 seen mid March.

'Investors should look for more U.S. economic signals for indications of near-term price movement. We see some near-term downside potential for precious metals,' De Wet warned.

At 09:15 a.m., spot gold was trading at $921.43 an ounce against $914.30 in late New York trade on Monday.

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