* Weak consumer data boosts gold as alternative asset
* Thailand ups gold reserves
* Silver eyes 30-year highs above $21
* Coming up: Investors on alert as Fed meets next week
(Adds comments, Thailand ups gold reserves, updates prices to
market close)
By Frank Tang
NEW YORK, Sept 17 (Reuters) - Gold hit a record high on
Friday for the third time this week as poor U.S. consumer
confidence and market talk of more quantitative easing helped
the alternative asset score its biggest weekly gain since May.
The metal received a boost from data showing Thailand
raised its gold holdings by a fifth in July through open-market
purchases, joining a growing list of Asian nations diversifying
into gold amid volatility in other markets. []
Silver <XAG=> rose to just below $21 an ounce, approaching
levels not seen since 1980 as gold's rally triggered further
investor speculation that the white metal would continue a
winning streak that began in August.
"Gold continues to reflect the overall level of concern.
The weak consumer confidence data was certainly supportive to
the rally in gold," said Frank McGhee, head of precious metals
trading at Integrated Brokerage Services in Chicago.
Gold surged to an all-time peak of $1,282.75 an ounce in
the European session on expectations that the U.S. Federal
Reserve, hoping to stave off double-dip recession, could
announce more quantitative easing -- usually a boon for gold.
After some profit-taking, the yellow metal turned higher
again after data showed consumer sentiment worsened in early
September to its weakest in more than a year. Another report
indicated little underlying U.S. inflationary pressure.
[]
Spot gold <XAU=> fetched $1,275.50 an ounce at 3:11 p.m.
EDT (2011 GMT), compared with $1,272.20 late in New York on
Thursday. It has gained more than $100, nearly 9 percent, since
the start of August.
U.S. December futures <GCZ0> settled up $3.70 at $1,277.50
an ounce.
On charts, gold remained well within a long-term rising
channel dating to late 2008, and technical buying could propel
the metal further above record highs, analysts said. (Graphic:
http://link.reuters.com/feg44p )
Gold's safe-haven status increased on renewed sovereign
debt worries in Ireland, after a report said Irish banks might
need a bailout, but Ireland's finance ministry said there was
no truth to the claim. [].
Foreign-exchange volatility also boosted gold's appeal as
an alternative currency. Japan intervened this week to weaken
the yen for the first time in six years and the United States
sharpened its tone on China's currency policy.
"It's partly a currency move. There's certainly investor
nervousness about monetary policy around the world since the
yen intervention," precious metals strategist Matthew Turner of
Mitsubishi Corp said.
The euro fell as European debt worries and the weak U.S.
consumer data enhanced the dollar's safe-haven appeal, while
fear of more Japanese intervention kept the yen near a
one-month low against the U.S. currency. []
Dollar sentiment overall has been damaged by speculation
that the Fed could announce more quantitative easing when it
meets on Tuesday.
SEASONAL DEMAND; SILVER OUTPERFORMS
September and October are typically strong periods for
jewelry demand, with a number of major gold-buying festivals
near the year-end in top consumer India, while Western
manufacturers stock up ahead of Christmas.
Eclipsing gold's rally, silver has gained 5 percent this
week, double the yellow metal's 2.5 percent increase. Spot
silver <XAG=> was up 0.1 percent at $20.74 an ounce from $20.72
in New York on Thursday.
"The last few months, silver has been benefiting as a
monetary metal like gold, when things are looking bad, and as
an industrial metal when things are looking good," Mitsubishi's
Turner added.
However, technical analysis suggests silver is overbought
and could be due a correction.
"Silver is renowned for overshooting and undershooting. In
my opinion, that kind of rate of increase can't be sustained. I
would not be recommending anyone to get long or longer silver
at $21," Credit Suisse analyst Tom Kendall said.
Spot platinum <XPT=> hit $1,630 an ounce, its highest since
May 19. It rose to $1,611.50 from $1,603.65 on Thursday and
palladium <XPD=> fell to $540.50 an ounce from $544.65.
Prices at 3:32 p.m. EDT (1932 GMT)
LAST/ NET PCT YTD
CLOSE CHG CHG CHG
US gold <GCZ0> 1277.50 3.70 0.3% 16.5%
US silver <SIZ0> 20.790 0.045 0.0% 23.4%
US platinum <PLV0> 1621.90 10.00 0.6% 10.3%
US palladium <PAZ0> 543.30 -3.65 -0.7% 32.9%
Gold <XAU=> 1275.05 2.85 0.2% 16.3%
Silver <XAG=> 20.74 0.02 0.1% 23.2%
Platinum <XPT=> 1611.50 7.85 0.5% 10.0%
Palladium <XPD=> 540.50 -4.15 -0.8% 33.3%
Gold Fix <XAUFIX=> 1274.00 -7.50 -0.6% 15.4%
Silver Fix <XAGFIX=> 20.85 9.00 0.4% 22.7%
Platinum Fix <XPTFIX=> 1618.00 1.00 0.1% 10.4%
Palladium Fix <XPDFIX=> 547.00 7.00 1.3% 36.1%
(Additional reporting by Melanie Burton in London; Editing by
Dale Hudson)
