(Drops reference to amount of IMF gold available in tenth
paragraph)
* Gold scales new high on weak dollar, economic uncertainty
* SPDR Gold hldgs up 2nd day, safe-haven demand underscored
* Platinum, silver, palladium renew year-to-date highs
*
http://graphics.thomsonreuters.com/129/MKT_GLD$OIL1209.gif
By Risa Maeda
TOKYO, Dec 2 (Reuters) - Gold rose more than 1 percent to
hit a record high for the second straight day on Wednesday as
the dollar remained weak and economic uncertainty, underscored
by Dubai's debt woes, supported the metal as a safe-haven
asset.
Gold is set to rise further on worries over risks in new
economies with a U.S. interest rate hike unlikely for at least
six months, given a shaky recovery in the world's biggest
economy, said Ronald Leung, director of Hong Kong's Lee Cheong
Gold Dealers.
But he also expressed caution over the pace of the rally.
"There has been too much good news and not so much bad news
for gold," he said. "People are cautious at every record high
level."
For a timeline on gold prices, click on:
http://graphics.thomsonreuters.com/119/GLD/GLD_TMLN1109.html
Spot gold <XAU=> was at $1,207.90 an ounce by 0408 GMT
after rising as high as $1,210.15, versus New York's notional
close of $1,196.00.
U.S. gold futures for February delivery <GCG0> hit a record
high of $1,211.80 an ounce before trading up 0.8 percent at
$1,209.30.
"The market is focusing on Friday's non-farm payroll and
other data from the U.S. and any good news from the Middle
East...and then of course the U.S. dollar," Leung said.
Also behind the caution is the market consensus that
volatility in gold prices is expected to stay high.
Demand is buoyed by persistent hopes for central banks to
diversify reserves, particularly China, after a report that
India could buy more of the gold being sold by the
International Monetary Fund.
After India's first purchase of 200 tonnes in November,
central banks in Mauritius, Russia and Sri Lanka also bought
gold.
For Asian central banks' views on gold, click:
[]
The latest data by the U.S. Commodity Futures Trading
Commission showed speculative net long U.S. gold futures
positions had risen to a record high in the week to Nov 24.
[]
"While we still think that the sector is likely to have a
strong year-end rally, the fast rising net speculative long
positions leave precious metals vulnerable to temporary profit
taking," Credit Suisse said in a research report on Wednesday.
In the currency market, the dollar was on the defensive and
the yen was on the back foot against higher-yielding currencies
as rising stocks and commodity markets encouraged a pick-up in
risk-taking. []
For factors behind surging gold prices, click:
[]
The world's biggest gold miner, Barrick Gold Corp <ABX.TO>,
said on Tuesday it had completed the elimination of all of its
gold hedge-selling positions as planned. []
De-hedging has represented a significant source of demand
in recent years.
The rate at which gold miners cut their hedging positions
rose to 3.18 million ounces in the third quarter, up from
980,000 oz in the second, driven by Barrick's decision to
eliminate its entire hedge book, Societe Generale and metals
consultancy GFMS Ltd said in its quarterly report.
[]
The sharp reduction left the global gold hedge book at
11.55 million ounces, the report said, adding that there has
not been strong signs of a return to outright hedging to lock
in historically high prices.
Strength in gold has lifted other precious metals, with
silver <XAG=> and palladium <XPD=> rallying to their strongest
levels since July 2008.
Spot platinum <XPT=> rose as high as $1,490.50 an ounce,
its highest since August last year.
The world's largest gold-backed exchange-traded fund, the
SPDR Gold Trust <GLD>, said its holdings rose 0.61 tonnes or
0.05 percent to 1,130.604 tonnes on Tuesday. []
The holdings are approaching a record marked in June of
1,134.03 tonnes.
For top 10 country holders of gold reserves, click:
[]
Precious metals prices at 0413 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 1208.40 12.40 +1.04 37.29
Spot Silver 19.25 0.18 +0.94 70.05
Spot Platinum 1484.50 6.00 +0.41 59.28
Spot Palladium 383.50 3.50 +0.92 107.86
TOCOM Gold 3393.00 67.00 +2.01 31.87
89093
TOCOM Platinum 4171.00 73.00 +1.78 57.28
13574
TOCOM Silver 540.90 20.30 +3.90 69.40
767
TOCOM Palladium 1085.00 55.00 +5.34 97.27
443
Euro/Dollar 1.5090
Dollar/Yen 87.03
TOCOM prices in yen per gram, except TOCOM silver which is
priced in yen per 10 grams. Spot prices in $ per ounce.
(Editing by Clarence Fernandez)
((risa.maeda@thomsonreuters.com; +81 3 6441 1856; Reuters
Messaging: risa.maeda.reuters.com@reuters.net))
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