TAIPEI, Dec 2 (Reuters) - Gold prices are currently high and markets should be careful of a potential asset bubble forming, a senior official at China's central bank said on Wednesday, as prices for the precious metal hit a record high. "We must keep in mind the long-term effects when considering what to use as our reserves," Hu Xiaolian, a vice-governor at the People's Bank of China, told reporters in Taipei, when asked if China had plans to increase its gold holding in its foreign exchange reserves. "We must watch out for bubbles forming on certain assets, and be careful in those areas." Gold hit record highs at $1,216.75 an ounce in Europe on Wednesday as investors bet on higher prices. (Reporting by Roger Tung) ((kelvin.soh@thomsonreuters.com; +886 2 2508 0815; Reuters Messaging: kelvin.soh.reuters.com@reuters.net)) Keywords: CHINA/GOLD (If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com)

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