* Gold rallies to record high as dollar slide fuels buying
* Gold at record highs in yen, sterling; near euro record
* Sentiment positive on central bank, hedge fund interest
(Recasts, updates comments, closing prices, market activity,
adds NEW YORK to dateline)
By Frank Tang and Jan Harvey
NEW YORK/LONDON, Nov 23 (Reuters) - Gold scaled a record
high at $1,173.50 an ounce on Monday as a weaker dollar boosted
buying in gold as a hedge against depreciation of paper
currencies.
Expectations of prolonged low U.S. interest rates also
supported bullion's investment demand.
The precious metal has rallied to a series of record highs
since news that India bought 200 tonnes of gold from the IMF
broke in early November. Since then a number of other central
banks have announced they are buying gold as well.
"Gold has a lot of momentum. It is trading off the back of
the dollar, and at the moment it seems to be outperforming that
trade, as are a lot of other commodities," said Daniel Major,
an analyst at RBS Global Banking & Markets.
"The main supportive factor outside of the dollar has been
various actions by central banks -- obviously the buying by
India, and since then there has been Russia, and Mauritius,"
said Major.
Market sentiment was highly supportive after news that star
hedge fund manager John Paulson said last week he was launching
a new gold fund. Paulson is among a number of hedge fund
managers stocking up on the metal.
Spot gold <XAU=> was at $1,164.20 an ounce at 2:08 p.m. EST
(1908 GMT), against $1,148.20 late in New York on Friday.
Earlier in the session, it hit an all-time high $1,173.50.
Year to date, the metal has risen nearly 33 percent.
U.S. gold futures for December delivery <GCZ9> on the COMEX
division of the New York Mercantile Exchange settled up $17.90,
or 1.6 percent, at $1,164.70 an ounce.
The dollar fell broadly on Monday, sliding nearly 1 percent
against a basket of six other currencies, after a Federal
Reserve official affirmed expectations that U.S. interest rates
will stay low for an extended period. []
Weakness in the U.S. unit boosts gold's appeal as an
alternative asset and makes dollar-priced commodities cheaper
for holders of other currencies.
Oil initially rose more than 2 percent to above $79 a
barrel. However, oil turned lower in late the session.
Strong oil prices raise the metal's appeal as an inflation
hedge. For a graphic on gold, oil and dollar's performance,
click on:
http://graphics.thomsonreuters.com/119/MKT_GLD$OIL1109.gif
NON-DOLLAR GOLD
Investors have been buying gold not only to protect
portfolios against a falling U.S. dollar but also against all
fiat currencies, analysts said.
Gold priced in currencies other than the dollar were also
reaching historic highs on Monday, with gold priced in euros
<XAUEUR=R> rising to a nine-month peak of 782.76 euros an
ounce, within 15 euros of a record high.
Sterling-priced gold <XAUGBP=R> reached a record high of
705.34 pounds an ounce, while gold denominated in Japanese yen
<XAUJPY=R> rose to a historic peak of 104,289 yen an ounce,
according to Reuters data going back to 1987.
Elsewhere, options traders are betting gold will hit $1,200
an ounce or higher by early next year. Strong options interest
could in turn lift underlying prices further into uncharted
territory. []
Gold's gains lifted other precious metals, with platinum
hitting its highest since September 2008 at $1,473.50, and
silver its strongest since July 2008 at $18.91 an ounce.
Spot platinum <XPT=> was at $1,458 an ounce against $1,441,
while palladium <XPD=> was at $369 against $361. Spot silver
<XAG=> was At $18.56 an ounce against $18.46.
For a timeline on gold's rise to record, click
[]
For a factbox on how to invest in gold, click on
[]
Close Change Pct 2008 YTD
Chg Close % Chg
US gold <GCZ9> 1164.70 17.9 1.6 884.3 31.7
US silver <SIZ9> 18.610 0.170 0.9 11.295 64.8
US platinum <PLF0> 1467.60 25.70 1.8 941.50 55.9
US palladium <PAZ9> 373.30 8.95 2.5 188.70 97.8
Prices at 2:25 p.m. EST (1925 GMT)
Gold <XAU=> 1163.85 15.65 1.4 878.20 32.5
Silver <XAG=> 18.57 0.11 0.6 11.30 64.3
Platinum <XPT=> 1457.00 16.00 1.1 924.50 57.6
Palladium <XPD=> 368.50 7.500 2.1 184.50 99.7
Gold Fix <XAUFIX=> 1169.50 3.50 0.3 836.50 39.8
Silver Fix <XAGFIX=> 18.76 58.00 3.2 14.76 27.1
Platinum Fix <XPTFIX=> 1464.00 5.00 0.3 1529 -4.3
Palladium Fix<XPDFIX=> 370.00 0.00 0.0 365.0 1.4
(Additional reporting by Lewa Pardomuan in Singapore; Editing
by Christian Wiessner)
((frank.tang@thomsonreuters.com; +1 646 223 6126;
Reuters Messaging: frank.tang.reuters.com@reuters.net))
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