* SPDR gold ETF holdings rise to record 1,307.963 T
* Gold:silver ratio at lowest since May on day-to-day basis
(Updates prices)
By Jan Harvey
LONDON, June 18 (Reuters) - Gold rallied to a record high
above $1,260 an ounce on Friday as momentum triggered by buying
of the metal as a haven from sovereign and financial risk pushed
prices through technical resistance to near their previous peak.
Spot gold <XAU=> hit a high of $1,260.20 an ounce and was
bid at $1,258.35 an ounce at 1501 GMT, against $1,243.40 late on
Thursday. U.S. gold futures for August delivery <GCQ0> also hit
a record $1,262.00, and were later up $11.40 at $1,260.00.
The precious metal has risen nearly 15 percent since the end
of 2009, fuelled by sovereign risk in the euro zone,
historically low interest rates, and concern over the stability
of paper currencies.
"Sovereign debt worries, central banks raising their
holdings and record low interest rates keep attracting new
buyers to gold," said Saxo Bank senior manager Ole Hansen.
"The Goldilocks scenario continues. Risk-off helps gold
through safe haven (buying), risk-on helps it as well through a
weaker dollar."
The dollar fell to three-week lows against the euro on
Friday, and a one-month low versus the Swiss franc, pressured by
disappointing U.S. data, which helped push U.S. Treasury yields
to their lowest in a week. []
Growth concerns also pressured industrial commodities, with
oil prices falling on Friday on signs economic expansion in the
world's top two oil consumers may not be as rapid as expected,
while base metals declined. []
Interest in gold improved, however, as the U.S. data raised
concerns about the pace of economic recovery. Lingering fears
over European sovereign debt levels are also burnishing the
metal's safe-haven appeal.
"We expect gold to continue to perform well given continued
fiscal/debt challenges in Europe and the potential for this to
spread to other regions," Deutsche Bank said in a note.
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For a timeline showing gold's rise to record highs, click
on: http://graphics.thomsonreuters.com/10/GLD_TMLN.html
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SPDR ETF HITS RECORD
Holdings of the world's largest gold-backed exchange-traded
fund, New York's SPDR Gold Trust <GLD>, hit record highs at
1,307.963 tonnes on Thursday as investors continued to turn to
physical bullion as a haven from risk.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
For a graphic showing the volume flow in holdings of the
SPDR fund, click on:
http://graphics.thomsonreuters.com/10/GLD_SPDRVL0610.gif. For a
graphic showing the rise in total holdings, click on:
http://graphics.thomsonreuters.com/10/GLD_SPDR0610.gif
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Silver <XAG=> tracked gold higher to a four-week peak of
$19.12 an ounce. It was later at $19.09 an ounce against $18.67,
slightly outperforming the yellow metal.
The gold:silver ratio fell to its lowest since late May on a
day-to-day basis, with one ounce of gold now buying 66 ounces of
silver. The silver market, smaller and more illiquid than gold,
tends to outperform the yellow metal when prices are rising.
"If both gold and silver continue to improve, we expect
silver to outperform, thus moving the gold-silver ratio lower,"
said ScotiaMocatta in a note.
Platinum <XPT=> was at $1,577.50 an ounce against $1,574,
while palladium <XPD=> was at $485.00 against $479.50.
The world's biggest palladium producer, Norilsk Nickel
<GMKN.MM>, said it had received an offer for some of its
Australian assets, and that it planned to proceed with plans to
divest them. []
(Editing by Sue Thomas)
