* Gold prices hit record for fifth straight session
* Dollar index slides to three-year low
* Angloplat Q1 output dips but keeps FY production target
(Updates prices, adds comment)
By Jan Harvey
LONDON, April 21 (Reuters) - Gold prices hit record highs
for a fifth session on Thursday and silver rallied to its
strongest since 1980 as the dollar slid to a three-year low
against a basket of major currencies.
The action in the currency markets added fuel to a rally
sparked by concerns over the U.S. economic outlook, rising
inflation, worries over euro zone debt and historically low
interest rates in the United States, analysts said.
Spot gold <XAU=> was bid at $1,502.10 an ounce at 1322 GMT,
against $1,498.15 late in New York on Wednesday, having earlier
peaked at $1,508.75 an ounce. U.S. gold futures for June
delivery <GCv1> rose $3.90 an ounce to $1,502.80.
Silver <XAG=> was bid at $45.71 an ounce against $45.20.
"We've seen the U.S. dollar weaken pretty much across the
board this morning, even against the yen," said Credit Suisse
analyst Tom Kendall.
"The carry trade is back in force and so we are looking at
the .DXY breaking down through 74, making new lows for the year,
and that is certainly playing into precious metals."
Gold prices have risen 5.4 percent so far this month and are
on track for a sixth straight week of gains, reflecting strength
across the commodity markets.
The Reuters-Jeffries CRB index <.CRB>, a global benchmark
for commodities, posted its biggest one-day rise in a fortnight
on Wednesday.
Many have been helped by losses in the dollar, which slid to
its lowest since early 2008 against a basket of major currencies
on Thursday. []
Brent crude rose above $124 a barrel as U.S. crude stocks
fell unexpectedly last week and the dollar weakened, though it
later pared gains. []
Investors have rushed into risky assets due to strong U.S.
corporate earnings and signs the global economy is chugging
along even as the Federal Reserve stays very cautious about when
it will start to unwind its super-loose policy.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Graphic showing the performance of various assets during the
1980s gold spike and now: http://r.reuters.com/mag29r
Gold:silver ratio: http://r.reuters.com/jyx88r
Inflation-adjusted gold price: http://r.reuters.com/ren88r
Interview with investor Jim Rogers: http://bit.ly/f39Z9Q
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
TIGHTER POLICY EYED
A tightening of U.S. monetary policy and eventual rise in
interest rates are still viewed as the biggest risk factors for
gold, which as a non-interest bearing asset has a lower
opportunity cost when rates are depressed.
But for the moment the precious metal is proving resilient
above $1,500 an ounce.
"We still expect dips to be viewed as buying opportunities,
with gold and silver viewed favourably by investors seeking to
hedge against inflation and debt jitters," said FastMarkets
analyst James Moore.
On the supply side of the market, African Barrick Gold
<ABGL.L> said its output fell 2 percent year-on-year in the
first quarter, but said it was on track to meet its full-year
production target. []
Gold is much less a hostage to traditional supply and demand
fundamentals than commodities that are physically consumed like
oil, but these factors can still have an impact on price.
"An ongoing supply/demand imbalance underpins the market as
good demand for gold jewellery and investment bars and coins in
Asia outweighs mine supply," said Fairfax analyst John Meyer.
Among other precious metals, platinum <XPT=> was at
$1,811.99 an ounce against $1,791.15, while palladium <XPD=> was
at $763 against $767.97.
Anglo Platinum <AMSJ.J>, the world's number one producer of
the precious metal, kept its full-year production target on
Thursday despite a 5 percent fall in first-quarter output
attributed to safety stoppages. []
(Reporting by Jan Harvey; Editing by Alison Birrane)
