* Traders await rate decisions from ECB, BoE
* Goldman Sachs ups 3-mth gold price forecast to $1,000/oz
* Aquarius Platinum cuts 2009 output forecast by 100,000/oz
(Updates throughout, changes dateline, pvs SINGAPORE)
By Jan Harvey
LONDON, Feb 5 (Reuters) - Gold rose in Europe on Thursday,
supported by interest in the metal as a haven from risk and a
slightly weaker dollar, with traders eyeing interest rate
decisions due from the Bank of England and European Central
Bank.
Spot gold <XAU=> was quoted at $913.10/915.10 an ounce at
1058 GMT, up from $904.70 late in New York on Wednesday.
"The dollar gave up some of its gains this morning," said
VTB Capital analyst Andrey Kryuchenkov. "Everyone is waiting to
see what will happen with the ECB rate decision, and the BoE."
He said gold had "good potential" to break higher.
The euro edged up against the dollar in nervous trade as
investors stayed on the sidelines ahead of the ECB's rate
decision. []
The ECB is widely expected to keep rates on hold after four
months of cuts, but the markets are looking for signs of further
steps it may take to shore up the euro zone economy.
[]
The BoE looked set to cut rates by a further 50 basis points
to a new record low [].
Interest in gold as safe store of value also fuelled buying
among risk-averse investors.
Interest in physical bullion in the form of coins and bars
and investment products such as gold-backed exchange-traded
funds has soared as fears over the outlook for the global
economy boosted volatility other asset prices.
Investors also fear the large amount of government debt
poured into the banking sector will fuel inflation.
"The fact that gold as an asset class has more trust in it
than a lot of other financial products out there at the moment
means people are continuing to push money in there," said
Commerzbank trader Rory McVeigh.
"There has been steady buying of small investment-type
physical gold, particularly in Europe, and exchange-traded
funds."
The world's largest bullion-backed ETF, New York's SPDR Gold
Trust <GLD>, said its holdings hit another record on Wednesday,
rising to 859.49 tonnes. []
SAFE
Goldman Sachs lifted its three-month gold forecast to $1,000
an ounce from $700 an ounce, citing safe-haven demand for gold.
[]
"The gold price rally has been driven by surging demand for
gold in all forms: physical gold, exchange traded funds and
futures contracts and investors seek a 'safe store of value',"
the bank said in a note.
"It is also important to emphasise that the recent strong
demand for gold has not been irrational, but rather pretty much
in line with the probabilities of financial and sovereign
default."
Silver <XAG=> climbed to $12.72/12.80 an ounce against
$12.51 late in New York on Wednesday.
Platinum <XPT=> was quoted at $975/980 an ounce against
$964, while palladium <XPD=> was at $199.50/203.50 an ounce
versus $194.
Aquarius Platinum <AQP.L>, the world's fourth largest
producer of the white metal, cut its 2009 production target by
100,000 ounces to 475,000 ounces, and said its output fell 6
percent in 2008 from the year before. []
"News of platinum producers struggling with costs and
production may help platinum prices move higher, although
continuing negative news on auto sales may hold prices back,"
said Fairfax analyst John Meyer.
(Reporting by Jan Harvey; Editing by William Hardy)
