Gold dipped on Thursday but remained within sight of a record high hit the previous day, while speculators sold platinum as they awaited new developments in South Africa's supply problems.

Gold fell to $955.40/956.30 an ounce from $957.50/958.30 late in New York, as investors book profits after the metal rallied to an all-time high of $964.70 on Wednesday on a tumbling dollar and the prospect of U.S. interest rate cuts.

Gold has gained around 16 percent this year on investor demand driven by record high crude oil prices and the possibility of more interest rate cuts, which has raised the metal's appeal as an alternative investment.

The upside target was pegged by dealers at $1,000 an ounce.

"In times of sharp rises in prices, it's a must to remember there are plenty of investors and traders waiting to re-enter on dips," said Pradeep Unni, an analyst at Vision Commodities in Dubai.

"The Federal Reserve is likely to slash rates further on March 18, propelling gold further north. Multiple closings above $950 would mean sustained gains in coming days."

The dollar held near record lows against the euro as a sharp drop in durable goods orders and home sales fuelled recession concerns while Fed Chairman Ben Bernanke signaled a readiness to cut interest rates again. "It's clear that investor interest in commodities as a whole remains very strong with particular interest from the pension funds who look for returns in commodities when many other markets are either too volatile or are falling," said Investec Australia.

In the physical sector, selling back from retail investors in Japan slowed down on expectations there was room for gold to rise further, while dealers in Singapore noted light selling from jewelers in Indonesia and Thailand.

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