MUMBAI (Reuters) - India gold futures traded near record high on Monday morning, bolstered by a weak dollar and safe haven buying overseas, analysts said. The most-traded December contract was 0.12 percent higher at 16,665 rupees per 10 grams at 10.19 a.m., after hitting a high of 16,679 rupees. The last record was at 16,688 rupees, struck on late Friday trade. The U.S. dollar fell on Monday while the New Zealand dollar led other commodity-linked currencies sharply higher after dairy giant Fonterra lifted its forecast payout to farmer shareholders by almost 20 percent. A weak dollar overseas enhances the yellow metal's appeal as an alternative investment. Safe haven buying also emerged due to failure of a meeting of financial officials of the Group of 20 nations to discuss the dollar's decline more specifically. "Weaker dollar is the main reason, which would support prices. It may possibly hit a new high, gold can go up to 16,750 rupees," said Aurobinda Prasad, deputy manager-research, Karvy Comtrade. "The upside potential is seen till 16,750 rupees," said Gnanasekar Thiagarajan, director, Commtrendz Research.

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