* Gold holds firm after run of record highs, nears $1,300
* Dollar rebound checks gold's gains after 5 record highs
* Gold-silver ratio remains near lowest since January
(Recasts, updates prices, market activity, new
byline/dateline, previously LONDON)
By Frank Tang
NEW YORK, Sept 23 (Reuters) - Gold rose to near $1,300 an
ounce on Thursday, on track for a fourth day of gains as
uninspiring U.S. jobless claims and housing data renewed desire
to buy bullion as a hedge against economic uncertainty.
Silver <XAG=> rose 0.3 percent to a 2-1/2 year high at
$21.23 an ounce, a hair below its highest since 1980, on strong
investment buying. The gold-to-silver ratio dropped to its
lowest level since January, as the white metal outperformed
gold in the last 30 days. (Graphic:
http://link.reuters.com/nyj25p )
Gold benefited from lackluster economic data after reports
showed new U.S. claims for jobless benefits rose unexpectedly
last week, and existing home sales in August climbed slightly
above market expectations from a 13-year low in July.
[]
"Right now, the gold market is really responding to
uncertainty, and any weak economic news is a bull signal to
gold," said William Rhind, strategic director at ETF
Securities.
"Gold is still reacting to another round of possible
quantitative easing and the future ramifications for paper
currencies in general," he said.
Bullion hit a record high at $1,296.10 an ounce on
Wednesday as the dollar tumbled after the Federal Reserve
signaled its readiness to pump billions of dollars into the
economy through purchases of government debt, a process known
as quantitative easing.
Spot gold <XAU=> rose 0.3 percent to $1,292.95 an ounce at
1:45 p.m. EDT (1745 GMT). U.S. gold futures for December
delivery <GCZ0> rose $2.50 to $1,294.60.
Gold's failure to make a new peak after five successive
record highs just short of the $1,300 mark prompted some
traders to ask whether the rally may be due for a pause. Spot
gold is up 3.5 percent this month and 18 percent for the year.
"Once we touch $1,300 it will probably stall there and
there will be some profit-taking, but it won't be extensive,"
said Andrey Krychenkov, an analyst at VTB Capital.
Gains were checked by a mild rebound in the U.S. dollar
against the euro on worries over Ireland's economy and banking
sector, which underlined concern over the euro zone periphery.
[]
While the recovery in the U.S. currency is keeping a lid on
further gains in gold, the possibility of further U.S. monetary
easing is providing support to prices.
"Heightened fears of the currency debasement that could
result from an expanding Fed balance sheet, the potential for
the Bank of England to follow suit, and last week's yen
intervention all compound gold's medium-term allure," said UBS
analyst Edel Tully in a note. (Graphic:
http://link.reuters.com/nym54p )
TECHNICAL PICTURE FIRM
On technical charts, support was evident after spot gold
cleared a trendline connecting the highs from December and
June, and resistance from a rising channel dated back to late
July coincided with the $1,300 mark.
At the annual gold-mining industry get-together in Denver,
Aaron Regent, the head of Barrick Gold, the world's largest
gold producer, said the same investor nervousness that has led
to record gold prices could just as quickly bring about the
demise of the bullion bulls. []
On the other hand, the CEO of Yamana Gold said gold has
room to rally further.
"When you have a massive influx of investment, and I don't
think we've seen it yet, it is the equivalent of a waterfall
coming through a garden hose," Yamana CEO Peter Marrone told
Reuters in an interview. []
Among other precious metals, silver remained well supported
after hitting another 2-1/2 year high overnight in Asia. It
stood at $21.18 an ounce against $21.11.
Platinum <XPT=> hit a fourth-month high at $1,645 an ounce.
It was trading at $1,638.75 an ounce against $1,627.10, while
palladium <XPD=> was at $554.50 against $538.25.
Prices at 1:11 p.m. EDT (1711 GMT)
LAST NET PCT YTD
CHG CHG CHG
US gold <GCZ0> 1295.90 3.80 0.3% 18.2%
US silver <SIZ0> 21.230 0.175 0.8% 26.0%
US platinum <PLV0> 1644.70 11.80 0.7% 11.8%
US palladium <PAZ0> 556.40 14.50 2.7% 36.1%
Gold <XAU=> 1294.50 4.90 0.4% 18.1%
Silver <XAG=> 21.20 0.09 0.4% 25.9%
Platinum <XPT=> 1638.75 11.65 0.7% 11.8%
Palladium <XPD=> 554.50 16.25 3.0% 36.7%
Gold Fix <XAUFIX=> 1290.75 -0.75 -0.1% 16.9%
Silver Fix <XAGFIX=> 21.08 0.00 0.0% 24.1%
Platinum Fix <XPTFIX=> 1631.00 1.00 0.1% 11.3%
Palladium Fix <XPDFIX=> 541.00 1.00 0.2% 34.6%
(Additional reporting by Jan Harvey in London; Editing by
David Gregorio)
