PRECIOUS-Gold hits record at $1,300; silver at 30-year high

                                
 * LBMA delegates see gold above $1,400, Barrick at $1,500/oz
                                
 * Charts suggest correction in the short term
                                
 * Coming Up; U.S. Chicago Fed index Aug; 1230 GMT    
                                
 
                                
 (Recasts, updates prices and comments, previous SINGAPORE)
                                
 By Humeyra Pamuk
                                
 LONDON, Sept 27 (Reuters) - Gold powered to hit a record
high at $1,300 an ounce as investors poured money into bullion
on fears of looming inflationary pressures as well as worries
about the health of the global economy.
                                
 Silver, often considered the poor man's gold, rose to a
30-year high as investors chased a cheaper alternative. The
metal has gained nearly 30 percent this year, catching up with
gold.
                                
 Fund managers and industry experts say gold's rally has more
legs to run in the longer-term as it provides a hedge against
inflation amid expectations that central banks worldwide could
resort to quantitative easing to support their economies.
                                
 Spot gold <XAU=> firmed to $1,297.70 an ounce by 0937 GMT,
after hitting an all-time high at $1,300 an ounce and versus a
last quote of $1,295.60 an ounce in New York on Friday.
                                
 "Every country in the world is giving signals that it could
print money...what else are you going to trust to apart from
gold," said Sean Corrigan, chief investment strategist at
Diapason Commodities Management.
                                
 "The longer-term outlook for gold is well supported," he
said. "There is no central bank that will stand aside and see
its economy weaken."
                                
 Bullion's rally accelerated last week after the U.S. Federal
Reserve signalled its readiness to pump billions of dollars into
the economy through purchases of government debt, a process
known as quantitative easing. [ID:nN20109053] [ID:nN21167941]
                                
 The Fed's statement hit the dollar, which had edged up from
five-month lows on Monday versus the euro but remained under
pressure, offering further support for gold. [FRX/]
                                
 U.S. gold futures for December delivery <GCZ0> rose $1.3 an
ounce to $1,299.4 an ounce, within sight of an all-time high at
$1,301.60 hit on Friday.
                                
 Industry participants predicted fresh highs for bullion.
Delegates at the London Bullion Market Association annual
conference forecast a price of $1,406 an ounce by September next
year, according to a snap poll. [ID:nLDE68Q0JF]
                                
 While the world's biggest producer of the yellow metal,
Barrick Gold <ABX.TO> says bullion could see above $1,500 an
ounce next year. [ID:nLDE68Q0QM]
                                
 
                                
 TECHNICALS, PHYSICALS ETC
                                
 But for the shorter term, charts show bullion's rally might
face resistance.
                                
 "In the very short term, technicals suggest around
$1,315-1,325 an ounce there could be a pullback," Corrigan said.
"I think the market could get very tired between here and
there," he said.
                                
 Although a potential correction could only be limited,
traders said, with physical market still buoyant despite record
high prices. Physical dealers in Singapore noted buying from
India despite record prices as the festive season progressed.
                                
 "There is buying even today despite gold touching $1,300 as
the rupee is in a supportive mode," said Pinakin Vyas, assistant
vice-president with IndusInd Bank. "The buying momentum would
continue on upcoming festivals after good monsoon rains and with
the economy looking well." [ID:nSGE68Q0CU]
                                
 Silver <XAG=> jumped to its highest in three decades at
$21.60 an ounce.
                                
 "The medium-term outlook for silver remains positive in our
view and we therefore raise our medium-term price target to $25
an ounce," said metals strategist Michael Widmer at Bank of
America Merrill Lynch in a research note. 
                                
 "With industrial production now slowing in many countries,
investors may take a front seat in the coming months...However,
as the global economy stabilises over the next two years and new
applications start to mature, we believe that fabrication demand
will strengthen, which should then give additional impetus to
push prices higher."
                                
 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. [ID:nSGE68Q01C]
                                
 Silver's main sources of demand are for use in industrial
applications such as semi-conductors and jewellery.
Spot platinum <XPT=> was at $1,636 an ounce versus Friday's
last quote of $1,637.70 an ounce while spot palladium <XPD=> was
at $554.50 an ounce versus $556.70 an ounce.
                                
 (Additional reporting by Lew Pardomuan in Singapore, Editing
by Alison Birrane)