* Euro rises through $1.50 to 15-month high vs dollar
* India's cenbank may consider more gold buys-report
* Silver ETF holdings hit record in London, New York
(Updates prices)
By Jan Harvey
LONDON, Nov 25 (Reuters) - Gold prices hit record highs at
$1,182.10 an ounce in Europe on Wednesday, boosted by the euro's
move through $1.50 against the dollar and by a report that India
may consider buying more bullion from the IMF.
Spot gold <XAU=> was bid at $1,180.05 an ounce at 1208 GMT,
against $1,168.90 late in New York on Tuesday.
U.S. gold futures for December delivery <GCZ9> on the COMEX
division of the New York Mercantile Exchange also hit a record
$1,182.40 an ounce and were later up $14.40 at $1,180.20.
The dollar extended losses on Wednesday, hitting a 15-month
low against the euro, on views U.S. rates would stay low and as
Russia said it would diversify currency reserves. []
Meanwhile, India's Financial Chronicle newspaper said on
Wednesday that India is open to buying more gold from the IMF,
which is thought to have around another 200 tonnes to sell.
"This, and the weaker U.S. dollar, are enough in these
markets to push gold further up," said Commerzbank trader
Michael Kempinski. "It should be time for a consolidation, but
it doesn't come... (we are) just making new highs."
"We see $1,200 earlier than expected," he added.
The market is sensitive to speculation of further official
sector buying after news in early November that India's central
bank had bought 200 tonnes of gold from the IMF sparked a rally.
Russia, Sri Lanka and Mauritius have since also announced
gold acquisitions, and traders speculate that more central
banks, particularly in Asia, could be open to gold acquisitions
to diversify their foreign exchange reserves.
DIVERSIFICATION
"We have had relatively supportive news from the central
banks, particularly in Asia, confirming that there is demand for
gold as a means of diversifying their large foreign exchange
reserves," RBS Global Banking & Markets analyst Daniel Major
said.
"There is plenty more potential for central banks to buy
either IMF gold or other gold in the market to try and boost
their reserves," he added.
Expectations for further reserve diversification, as well as
prospects for further dollar weakness and fears over inflation
in 2010 have all fuelled investment demand for the precious
metal, and could lead to further sharp prices gains.
"Central bank and other investor demand could see gold move
to $1,500/oz in the next 3-6 months," Fairfax said in a note.
Dollar weakness helped lift other commodities, with oil
prices ticking up half a percent and industrial metals prices
climbing. [] []
Holdings of the world's largest gold exchange-traded fund,
the SPDR Gold Trust <GLD>, rose nearly 1 tonne on Tuesday to
their highest since late June. []
Indian gold traders meanwhile continued to stock up for
weddings in anticipation of a further price rise, but the flow
of scrap sales eased. []
Silver <XAG=> was bid at $18.60 an ounce versus $18.49.
Holdings of the world's main silver ETF rose 136 tonnes to a
record 9,252 tonnes on Tuesday, while ETF Securities' silver
exchange-traded product also hit record levels. []
Platinum <XPT=> was at $1,470.50 an ounce against $1,444.50,
while palladium <XPD=> was at $372.50 against $366.35. Holdings
of ETF Securities' palladium-backed ETP rose to a record 620,359
ounces on Tuesday, and are up 11 percent month-on-month.
(Editing by Sue Thomas)
((jan.harvey@thomsonreuters.com; +44 207 542 7744; Reuters
Messaging: jan.harvey.reuters.com@reuters.net))
