By Polya Lesova, MarketWatch FRANKFURT (MarketWatch) -- Gold futures fell on Thursday after climbing to a record just below $1,200 an ounce, as the dollar rebounded against its rivals, pressuring the precious metal. Gold for December delivery dropped $3.30 to $1,183.70 an ounce in electronic trading on Globex. Earlier, gold rose to a high of $1,195 an ounce, extending its record-breaking streak. The metal "has run into profit-taking since trade has opened in Europe today," said James Moore, an analyst at TheBullionDesk.com. It's "vulnerable to corrections and could be in for a choppy day due to thin holiday trade," Moore wrote in a note to clients. "However, with the dollar expected to extend its decline, gold seems certain to challenge the $1,200 level in the very near future, as investment demand for gold remains very strong." Trading will be thin on Thursday because markets in the U.S. are closed for the Thanksgiving holiday. The dollar index (DXY 74.54, -0.80, -1.06%) , which measures the greenback against a trade-weighted basket of six major currencies, gained 0.3% to 74.518 in recent trading. It earlier fell as low as 74.227 -- its lowest level since August 2008. Gold and the dollar have a strong inverse correlation. When the dollar falls, gold prices tend to rise and vice versa. Gold gained 1.8% on Wednesday following reports that central banks were in the market to buy bullion. The Financial Chronicle newspaper reported that India's central bank may buy the 201.3 tons of gold the IMF is selling on terms now being negotiated. Also Wednesday, the IMF said it sold 10 metric tons of gold to the Central Bank of Sri Lanka for $375 million.

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