* Cash gold hits $1,300, Indian jewellers buy
* Coming Up; U.S. Chicago Fed index Aug; 1230 GMT
(Updates with new record level)
By Lewa Pardomuan
SINGAPORE, Sept 27 (Reuters) - Gold powered to an all-time
high at $1,300 an ounce on Monday as worries about the health
of the global economy spurred buying, with top consumer India
also defying high prices during the festive season.
Silver, often considered the poor man's gold, rose to a
30-year high as investors chased cheaper alternative. The metal
has gained nearly 30 percent this year.
Spot gold <XAU=> added $3.25 an ounce at $1,298.85 by 0658
GMT, after rising as high as $1,300. Gold has gained on a
weaker dollar and economic uncertainty after the Federal
Reserve raised expectations of new measures to stimulate
growth.
"We may see a bit of short-term profit taking, I would say.
Of course on a longer-term basis, there will still be an upward
trend for gold prices," said Ong Yi Ling, investment analyst at
Phillip Futures in Singapore.
"I think by the end of this year, we could look at about
$1,350 or even $1,400."
Physical dealers in Singapore noted demand from India, the
world's top buyer, despite record prices as the festive season
progressed. The auspicious day of Dhanteras, when the country's
jewellery shops normally witness the highest gold sales every
year, falls in November.
"India is still buying. That's very good," said a physical
dealer in Singapore, who trades with India.
U.S. gold futures for December delivery <GCZ0> rose $2.2 an
ounce to $1,300.3 an ounce, within sight of an all time high at
$1,301.60 hit on Friday.
Thinly-traded silver <XAG=> jumped to its highest in three
decades at $21.60 an ounce.
"With gold at record high prices, investors are
rediscovering silver also as a safe haven. For me, in order for
silver to continue to rally, gold prices have to actually hold
firm," said Ong of Phillip Futures.
The world's largest silver-backed exchange-traded fund, the
iShares Silver Trust <SLV>, said its holdings rose to a record
high at 9,613.02 tonnes by Sept 24 from 9,582.59 tonnes on Sept
23. []
Silver's main sources of demand are for use in industrial
applications such as semi-conductors and jewellery.
"Investors are keen to buy and there's a bit of industrial
demand for silver," said a physical dealer in Hong Kong.
The dollar edged up from five-month lows versus the euro on
Monday after falling sharply last week on
stronger-than-expected data in Europe and speculation the Fed
may yet turn to more quantitative easing to support the
economy. []
The world's largest gold-backed exchange-traded fund, SPDR
Gold Trust <GLD.P>, said its holdings fell to 1,300.521 tonnes
by Sept 24 from 1,301.433 tonnes on Sept 23.The holdings hit a
record at 1,320.436 tonnes on June 29. []
Japan's Nikkei average rose 1.4 percent on Monday, buoyed
by exporters after Wall Street jumped on a rebound in U.S.
business spending, but gains were capped by the yen's strength.
Oil was steady on Monday, trading close to a two-week high
near $77 reached earlier, as energy and commodities regained
the favour of investors with a weaker dollar and resurfacing
risk appetite. []
Precious metals prices at 0658 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 1298.85 3.25 +0.25 18.54
Spot Silver 21.57 0.16 +0.75 28.16
Spot Platinum 1636.00 -1.70 -0.10 11.52
Spot Palladium 555.43 -1.27 -0.23 36.97
TOCOM Gold 3526.00 -6.00 -0.17 8.19
28985
TOCOM Platinum 4465.00 -18.00 -0.40 1.92
10026
TOCOM Silver 58.80 0.90 +1.55 13.73
1016
TOCOM Palladium 1515.00 3.00 +0.20 30.04
311
Euro/Dollar 1.3477
Dollar/Yen 84.23
TOCOM prices in yen per gram. Spot prices in $ per ounce.
(Editing by Ed Lane)
(lewa.pardomuan@thomson reuters.com; +65 6870 3834; Reuters
Messaging: lewa.pardomuan.reuters.com@reuters.net))
