* Gold hits record highs in sterling terms, Indian futures
* SPDR Gold Trust sees near 5 percent inflow
(Updates prices, adds detail, comment)
By Jan Harvey
LONDON, Feb 12 (Reuters) - Gold rose in Europe on Thursday,
boosted by interest in bullion and gold-backed exchange traded
funds as a safe store of value amid fears over the global
economy.
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 $946.40/948.40 an ounce at
1540 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.
U.S. gold futures for April <GCJ9> delivery on the COMEX
division of the New York Mercantile Exchange rose $4.10 to
$947.90 an ounce. Earlier they hit a high of $950.90, their
strongest level since July 23.
"Risk aversion has returned to the market with full force,"
said Ole Hansen, senior manager with Saxo Bank. "That makes
people seek out safe havens, which is reflected not only in the
inflows into gold but also the bonds market."
A slide in equity markets is also helping gold as investors
move out of stocks in favour of bullion, he added.
World stocks slid on Thursday, pushing the yen, bonds and
gold higher as investors grew increasingly disappointed over a
compromise on a $789 billion U.S. fiscal stimulus plan.
[]
Worries over the outlook for the plan overshadowed a
surprise rise in January retail sales. []
Rising risk aversion is benefiting the dollar, 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 precious metals trader Alexander Zumpfe.
"There is very strong investor demand, which you see when
you look at the data coming from the ETFs, which are at record
levels."
RECORD
The world's largest gold-backed ETF, New York's SPDR Gold
Trust, said its holdings rose nearly 5 percent on Wednesday to
record levels. 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.
Gold could be poised to rally above its previous all time
high to as much as $1,500 an ounce if it manages to close the
week above $892 an ounce, according to technical analysts at
Barclays Capital. []
The metal shrugged off softening oil prices. Crude fell
below $35 a barrel, dragged down by the overhang in U.S. crude
stocks and concerns over the U.S. economy.
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 $13.47/13.55 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 $1,069/1,074 an ounce against
$1,067, while spot palladium <XPD=> was at $214/218 an ounce
against $212.
(Reporting by Jan Harvey; Editing by James Jukwey)
