Jan 11 (Reuters) - Gold prices rose for a second day on Thursday, extending the gains in the previous session when prices climbed to the highest since September, as dollar weakness and a flagging rally in equities enticed investors to buy the yellow metal. Spot gold was up 0.2 percent at $1,318.98 an ounce by 0242 GMT. Prices rose to as high as $1,326.56 an ounce on Wednesday, the most since Sept. 15. U.S. gold futures were little changed at $1,319.10 an ounce. Gold prices on Wednesday rose over 1 percent as the dollar swooned after a report that Chinese officials had recommended slowing or halting purchases of U.S. Treasury securities. Officials reviewing China's foreign-exchange holdings have recommended slowing or halting purchases of U.S. Treasuries, Bloomberg News reported on Wednesday, citing people familiar with the matter. The U.S. dollar fell to its lowest since November against the Japanese yen and weakened against a basket of major currencies on Wednesday after the report. It fell 0.1 percent to 92.29 on Thursday. "Rising oil prices and strong global growth suggest gold will remain supported as investors look for inflation protection," said Stephen Innes, APAC head of trading at Oanda. "Also, a highly anticipated stock market correction is providing support on dips which continues to support the bullish gold narrative."
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