* 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
(Updates prices and comments)
By Humeyra Pamuk
LONDON, Sept 27 (Reuters) - Gold powered to a record high at
$1,300 an ounce on Monday, with investors pouring more cash into
the market on global economic health worries and the possibility
of further quantitative easing to stimulate growth.
Silver, often considered the poor man's gold, rose to a
30-year high as investors also chased a cheaper alternative. The
metal has gained nearly 30 percent this year.
Fund managers and industry experts say gold's rally has
further 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 $1,299.30 an ounce by 1143 GMT,
after hitting a historic $1,300 an ounce and versus $1,295.60
quoted late 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. [] []
The Fed's statement had 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. []
U.S. gold futures for December delivery <GCZ0> rose $2.1 an
ounce to $1,300.10 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. []
The world's biggest producer of the yellow metal, Barrick
Gold <ABX.TO> said bullion could see above $1,500 an ounce next
year. []
TECHNICAL RESISTANCE?
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.
A potential correction could be limited, traders said, with
the 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." []
Silver <XAG=> jumped to its highest in three decades at
$21.61 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.
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.
Spot platinum <XPT=> was at $1,633 an ounce versus Friday's
last quote of $1,637.70 an ounce while spot palladium <XPD=> was
at $556 an ounce versus $556.70 an ounce.
(Additional reporting by Lewa Pardomuan in Singapore,
Editing by Alison Birrane)
