* Gold terms record highs in sterling terms, Indian futures
* SPDR Gold Trust sees near 5 percent inflow
(Updates throughout, changes dateline from TOKYO)
By Jan Harvey
LONDON, Feb 12 (Reuters) - Gold climbed in Europe on
Thursday, building on gains that took it to a 6-1/2 month high
in the previous session, as risk aversion fuelled investor
demand for bullion and gold-backed exchange traded funds.
Gold priced in sterling <XAUGBP=> and gold futures in India
<MAUc1> hit an all-time high, adding to record peaks recorded
for bullion on Wednesday in euro, Canadian dollar and Swiss
franc terms. []
Spot gold <XAU=> was quoted at $943.10/944.70 an ounce at
1015 GMT, up from $938.35 an ounce late in New York on
Wednesday. The metal hit a peak of $953.30 that day, its highest
since July 2008.
"Gold is still in a very bullish trend," said Alexander
Zumpfe, precious metals trader at Heraeus. "There is very strong
investor demand, which you see when you look at the data coming
from the ETFs, which are at record levels."
The world's largest gold-backed ETF, New York's SPDR Gold
Trust, said its holdings rose nearly 5 percent on Wednesday.
Gold prices rallied soon after the opening of the New York
market, suggesting heavy buying. []
ETFs and physical gold products such as coins and bars have
proved popular with investors as the global slowdown shows
little sign of abating.
The U.S. Congress is poised to pass as early as Thursday a
$789 billion package of measures to stimulate the economy, which
is reeling from a slump in asset prices, scarce credit and
millions of layoffs. []
"The final passage of the stimulus, if it were to alleviate
some investor uncertainty, could provide a headwind to the gold
rally," said HSBC analyst James Steel.
Elsewhere the first fall in Japan's wholesale prices in five
years showed the country may be entering a period of deflation,
while Australia said its unemployment rate rose to a two-year
high and South Korea's central bank slashed interest rates.
European shares slipped more than 1 percent on Thursday as
fresh signs of deepening economic misery overshadowed the
potential U.S. deal. []
RISK
Rising risk aversion benefited the dollar, however, as
investors bought into the perceived safety of the currency as
stocks fell. []
Usually a stronger dollar weighs on gold, which is often
bought as a currency hedge. However, the two assets have broken
their historic relationship as both become attractive as a haven
from risk.
"Gold is still decoupled from movements in the currency
markets, which means at the moment it has a life of its own,"
said Heraeus' Zumpfe.
Oil prices meanwhile were little changed just below $36 a
barrel as fears over demand weighed. []
In supply news, South Africa said its gold output fell 17.6
percent year-on-year in December. The republic is the world's
second largest producer of gold after China. []
The IMF also told Reuters it had no intention of changing
plans to sell 403 tonnes of gold once it has received
Congressional approval to do so. []
Among other precious metals, spot silver <XAG=> was quoted
at $13.59/13.65 an ounce, against $13.49. Holdings of the
largest silver-backed ETF, the iShares Silver Trust <SLV> are
currently at an all-time high of nearly 7,607 tonnes.
Spot platinum <XPT=> was at $1,080/1,085 an ounce against
$1,067, while spot palladium <XPD=> was at $214/218 an ounce
against $212.
(Reporting by Jan Harvey; Editing by Guy Dresser)
