* Gold underpinned by expectations for more official buying
* U.S. holiday may make players cautious
* Gold boosted by USD's 14-yr low vs yen, 15-mth low vs
index
* SPDR Gold holdings inch up 0.5 pct
*
http://graphics.thomsonreuters.com/119/MKT_GLD$OIL1109.gif
By Chikako Mogi
TOKYO, Nov 26 (Reuters) - Gold hit a record high above
$1,192 on Thursday as the dollar stumbled further and sentiment
remained solid on expectations of more central bank buying of
bullion.
The dollar extended losses on Thursday, falling to its
lowest in 14 years against the yen and hitting a fresh 15-month
low against a basket of six major currencies. []
Gold prices have risen about 15 percent since the beginning
of November, with demand fuelled by expectations of further
reserve diversification, prospects for a sickly U.S. currency
and fears about inflation in 2010.
The market is highly sensitive to speculation of more
bullion buying by central banks looking to diversify foreign
exchange reserves, particularly in Asia, after a newspaper
report that India is open to buying more gold from the
International Monetary Fund following its purchase of 200
tonnes earlier this month.
The IMF had no comment on the report. []
Late on Wednesday, the IMF said it had sold 10 tons of gold
to the Central Bank of Sri Lanka, a part of 403.3 tons of sales
approved by the fund's executive board in September. The fund
has already sold 202 tons of gold to the Reserve Bank of India
and the Bank of Mauritius.[]
"Everybody is bullish on gold, and everybody is looking at
the signal central banks are sending," said Dick Poon, manager
of precious metals at Heraeus in Hong Kong.
"It's not just India or China, but most of the central
banks, as well as funds, have changed their portfolios to
include gold. So, everybody is looking at how much money they
will invest in gold," he said.
He said there was a lot of physical demand despite high
prices, with Asian buyers seen in the market.
Spot gold <XAU=> hit a fresh record high of $1,194.70, up
from New York's notional close of $1,190.30.
U.S. December gold futures <GCZ9> also rose to a fresh high
of $1,194.80 per ounce. Futures settled up $21.20, or 1.8
percent, at $1,187.00 an ounce on the COMEX division of the New
York Mercantile Exchange.
For a timeline on gold prices, click:
http://graphics.thomsonreuters.com/119/GLD/GLD_TMLN1109.html
Vietnam's central bank has granted quotas for the import of
10 tonnes of gold since lifting an import ban earlier this
month, and 6.8 tonnes had already come in, state broadcaster
VTV said on Wednesday. []
Russia's central bank bought 15.6 tonnes in October and has
said it aims to increase gold's share in its reserves this
year. []
"These moves further add to market speculation that central
banks will continue to buy gold," said Wakako Harada, a senior
trader at Mitsubishi Corp in Tokyo.
U.S. markets will be closed on Thursday for the
Thanksgiving holiday.
"Reserve diversification moves by non-G7 central banks
underscore investor detachment from U.S. dollar assets and is
clearly reflected in gold's rally," said Shuji Sugata, a
manager at Mitsubishi Corp Futures' research team.
Traders said volume was not large, with many players kept
to the sidelines due to the Thanksgiving holiday.
Yuichi Ikemizu, Tokyo branch manager for Standard Bank,
said he did not expect strong follow-through buying, as players
were likely to become cautious with the U.S. on holiday.
"But sentiment is underpinned by speculation about central
bank buying of gold, with many believing India will buy more
from the IMF. And the dollar's weakness is also supportive," he
said.
With many market players expecting gold's bull run to
continue, investment in gold increased.
The world's largest gold-backed exchange-traded fund, SPDR
Gold Trust <GLD>, said its holdings stood at 1,127.860 tonnes
as of Nov. 25, up 5.489 tonnes, or 0.5 percent, from the
previous day and just shy of a record 1,134.03 tonnes hit on
June 1. []
Precious metals prices at 0403 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 1194.40 4.10 +0.34 35.70
Spot Silver 18.80 -0.02 -0.11 66.08
Spot Platinum 1477.50 4.50 +0.31 58.53
Spot Palladium 372.00 2.00 +0.54 101.63
TOCOM Gold 3342.00 -16.00 -0.48 29.89
57068
TOCOM Platinum 4133.00 -33.00 -0.79 55.84
10711
TOCOM Silver 527.30 -4.50 -0.85 65.14
251
TOCOM Palladium 1050.00 -11.00 -1.04 90.91
138
Euro/Dollar 1.5111
Dollar/Yen 86.60
TOCOM prices in yen per gram, except TOCOM silver which is
priced in yen per 10 grams. Spot prices in $ per ounce.
(Editing by Clarence Fernandez)
((chikako.mogi@thomsonreuters.com; +81-3 6441 1871; Reuters
Messaging: chikako.mogi.reuters.com@reuter s.net))
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