Gold surged to a record high just under $900 on Wednesday, powered by heavy investor buying and helped by firm oil and a strong debut for Shanghai gold futures, but it later slipped below previous day's closing level.

Profit-taking, a recovery in the dollar and some weakness in oil prices contributed to gold's decline. Platinum pared gains after hitting lifetime highs.

Spot gold saw volatile trading, with prices jumping as high as $891.40 an ounce and falling to $871.60. It was quoted at $875,60/876.30 at 10:40 a.m. EST, against $878.10/878.90 in New York late on Tuesday.

"These sell-offs are just temporary, giving people some breathing space. Every so often there is some profit-taking, but gold is bought on every dip," said Peter Hillyard, head of metals sales at ANZ Investment Bank.

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"We are in a bull market and it's not over yet. The funds are piling in and the market is expecting gold to move through $900 quite soon, probably within a week. You are going to see gold make its way to $1,000 over the next six months."

The dollar rebounded late on Wednesday on technical buying, but a speech by the Federal Reserve chief and key central bank meetings scheduled on Thursday confined trading to tight ranges.

A firmer dollar makes gold costlier for holders of other currencies and often lowers bullion demand. The metal is also generally seen as a hedge against oil-led inflation.

Oil eased below $96 a barrel after rising.