* Silver touches 2-1/2-year high; gold/silver ratio 8-mo
low
* Gold could rise to $1,286 an ounce - technicals []
* Coming up: Univ. of Michigan consumer sentiment; 1355
GMTT
By Rujun Shen
SINGAPORE, Sept 17 (Reuters) - Gold held steady on Friday
near its record as investors remained concerned over the
economic recovery, and as a weak dollar provided support.
Data out of the U.S. on Thursday showed an improved job
market, while factory activity in the Mid-Atlantic continued to
contract in September, albeit at a slower pace. []
The euro hovered below a one-month high on the dollar and
yen. The dollar held near its highest in a month against the
yen, capped by chart points and expected sales by Japanese
exporters but supported by wariness of Japanese yen-selling
intervention. []
"Gold in recent times has been tracking the fortunes of the
euro," said Darren Heathcote, head of trading at Investec
Australia in Sydney. "Given that the euro has appreciated by a
big figure against the U.S. dollar, it wasn't surprising to see
gold not only test the $1,275 level but break through it."
"As we are trading gold around that number now?, the
momentum is very positive for potential testing of $1,300 in
the next few days."
Spot gold hit a new record of $1,277.7 in the previous
session. It was trading at $1,275.2 an ounce by 0309 GMT, on
course for a rise of 2.6 percent from a week earlier, the
biggest weekly gain in more than three months.
U.S. gold futures for December delivery <GCZ0> edged up 0.2
percent to $1,276.8 an ounce.
Technical analysis showed that spot gold could rise to
$1,286 an ounce as per a flag and pennant pattern, according to
Wang Tao, a Reuters market analyst. []
Gold premium in Hong Kong was unchanged after it hit a
record for a second time this week, at a premium of between 50
to 70 cents to spot London prices.
"There is not much scrap around these days. Selling is not
too aggressive, unless the ETF turned around," said Ronald
Leung, a physical dealer at Lee Cheong Gold Dealers in Hong
Kong.
"Only if interest rates were raised, people's attitude
towards gold would change from bullish to bearish. But for the
near term, we don't see anything."
Spot silver <XAG=> touched a 2-1/2-year high of $20.82 an
ounce in early trade, and stood at $20.77, heading for a
5-percent weekly gain.
The gold/silver ratio, used to measure the ounces of silver
needed to buy an ounce of gold, has been on a steady decline
since late August. It stood at a nearly 8-month low of 61.38,
way below the average of 64.38 over the past 28 years.
For a chart on the ratio, click:
http://graphics.thomsonreuters.com/AS/0810/RS_20101709105917.jp
g Spot platinum <XPT=> hit an intraday high of $1,615.5,
within sight of a near 4-month peak of $1,618 hit in the
previous session. Platinum is on course for a weekly gain of 5
percent, the sharpest in 8 months.
Palladium <XPD=> gained 1.2 percent to $551.25 an ounce,
poised for a 7-percent gain from a week earlier, the biggest
since late June.
Precious metals prices at 0309 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 1275.20 3.00 +0.24 16.38
Spot Silver 20.77 0.05 +0.24 23.41
Spot Platinum 1614.00 10.35 +0.65 10.02
Spot Palladium 551.25 6.60 +1.21 35.94
TOCOM Gold 3524.00 46.00 +1.32 8.13
39978
TOCOM Platinum 4471.00 70.00 +1.59 2.05
15098
TOCOM Silver 57.70 1.30 +2.30 11.61
780
TOCOM Palladium 1523.00 16.00 +1.06 30.73
321
Euro/Dollar 1.3098
Dollar/Yen 85.75
TOCOM prices in yen per gram. Spot prices in $ per ounce.
(Editing by Manash Goswami)
