* Inflation, economic fears led to investment buying
* Gold hits record highs in sterling terms, Indian futures
* SPDR Gold Trust sees near 5 percent inflow
(Recasts, updates with quotes, closing prices, adds NEW YORK
to dateline)
By Frank Tang and Jan Harvey
NEW YORK/LONDON Feb 12 (Reuters) - Gold futures climbed
above $950 an ounce on Thursday, ignoring a stronger dollar and
weaker energy prices as investment buying surged in
bullion-backed, exchange-traded funds amid economic
uncertainties.
"There are some serious concerns with respect to the
current financial system," said Brian Hicks, co-manager of the
$500 million Global Resources Fund at U.S. Global Investors.
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.
[]
"It all implies that the (U.S.) government has to increase
money supply, and there are some concerns down the road for the
U.S. currency. So, a lot of investors large and small are
looking to hedge that and buy gold," Hicks said.
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 at $949.85 an ounce at 3:00 p.m. EST
(2000 GMT), up 1.2 percent from the its previous session.
Bullion hit a peak of $953.30 on Wednesday, its highest level
since July 2008.
U.S. gold for April delivery <GCJ9> settled up $4.70 at
$949.20 an ounce on the COMEX division of the New York
Mercantile Exchange. Earlier it hit a high of $954, the
loftiest price 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."
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," he added.
RECORD GLD HOLDINGS
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. []
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.
Among other precious metals, spot silver <XAG=> was at
$13.48 an ounce, down 0.1 percent from its previous close of
$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 $1,072.00 an ounce, up 0.5
percent from its last finish of $1,067, while spot palladium
<XPD=> was at $214.00 an ounce, up 0.9 percent from its
previous close on Wednesday.
(Editing by Christian Wiessner)
