(Repeats to correct typo, no other changes to text)
* Gold rallies to record, de-couples from dollar
* IMF sells 200 tonnes of gold to India's central bank
* Buying also speeds on producer buyback potential
(Recasts, updates with prices, comments, market activity, adds
NEW YORK to dateline)
By Frank Tang and Veronica Brown
NEW YORK/LONDON, Nov 3 (Reuters) - Gold swept to a record
high above $1,080 an ounce on Tuesday, defying dollar strength
as the International Monetary Fund's 200-tonne sale of gold to
India's central bank boosted sentiment toward the metal.
The purchase by the Reserve Bank of India underscored
gold's increasing status as an official reserve. Gold's rally
in the face of a stronger dollar also signaled the metal could
rise further, dealers said.
Spot gold <XAU=> was at $1,087.25 per ounce at 2:20 p.m.
EST (1920 GMT), up 2.6 percent from $1,059.15 quoted late in
New York on Monday. Earlier, gold hit an all-time high of
$1,087.45.
U.S. December gold futures <GCZ9> settled up $30.90, or 2.9
percent, at $1,084.90 an ounce on the COMEX division of NYMEX.
The IMF said on Monday it had sold 200 tonnes of gold to
India for $6.7 billion. The sale lifted some uncertainty from
the market by helping soak up potential supply.
[]
"It all generates from the fact that the IMF sold 200
tonnes to the Reserve Bank of India. That is very bullish as it
takes 200 tonnes away from the direct market," said Bill
O'Neill, partner at New Jersey-based LOGIC Advisors.
"That shows that future IMF sale will be conducted in a
similar manner," O'Neill said.
The IMF sale, part of an agreement to sell about an eighth
of the Fund's stock, fueled speculation that other governments
-- including Beijing -- may be ready to diversify their
reserves even at near record prices.
Some traders noted that selling pressure was limited during
Tuesday's sudden rally as major dealers were away from the
trading desks attending the London Bullion Market Association's
annual conference in Edinburgh.
NEXT STOP, $1,100?
The dollar hit a one-month high against a basket of
currencies on Tuesday as investors retreated from risk assets,
before paring those gains. The greenback later pared gains.
A strong dollar makes gold and other commodities priced in
the U.S. unit less attractive for non-U.S. investors []
Gold's sharp rally in spite of a dollar rise showed that
strong demand will continue support the metal.
"Gold is rallying regardless of currency actions," said
Adam Klopfenstein, senior market strategist at futures broker
Lind-Waldock.
Stephen Briggs, commodity strategist at RBS, said gold has
clearly broken away from the relationship with the dollar.
"We wouldn't be surprised to see $1,100. It's gone up $25
in the space of half an hour, so how can one say?"
U.S. traders also said the gold market was finding support
from potential for accelerated producer buybacks in as miners
are keen to back gold they had previously sold forward.
Miners Anglogold Ashanti <ANGJ.J> and Barrick gold <ABX.TO>
both told Reuters on Monday that closure of their hedgebooks
might happen ahead of schedule.
Looking ahead, the U.S Federal Reserve begins a two-day
policy-setting meeting later this session.
While the bank is expected to keep benchmark interest rates
unchanged near zero, there is speculation it might alter its
pledge to keep rates low for an "extended period."
Other precious metals rallied in gold's wake, with silver
<XAG=> adding 5.2 percent to $17.28 an ounce, against $16.43 an
ounce late on Monday.
Less-liquid silver tends to be more volatile and often
outperforms gold in a metals rally.
Platinum <XPT=> rose to $1,356 an ounce compared with
$1,334.00, while palladium <XPD=> was at $324.00 against its
previous session late quote of $321.50.
Close Change Pct 2008 YTD
Chg Close % Chg
US gold <GCZ9> 1084.90 30.9 2.9 884.3 22.7
US silver <SIZ9> 17.180 0.740 4.5 11.295 52.1
US platinum <PLF0> 1356.20 18.10 1.4 941.50 44.0
US palladium <PAZ9> 327.75 1.40 0.4 188.70 73.7
Prices at 2:18 p.m. EST (1918 GMT)
Gold <XAU=> 1085.50 26.35 2.5 878.20 23.6
Silver <XAG=> 17.28 0.85 5.2 11.30 52.9
Platinum <XPT=> 1356.50 22.50 1.7 924.50 46.7
Palladium <XPD=> 324.50 3.000 0.9 184.50 75.9
Gold Fix <XAUFIX=> 1061.00 3.00 0.3 836.50 26.8
Silver Fix <XAGFIX=> 16.35 -23.00 -1.4 14.76 10.8
Platinum Fix <XPTFIX=> 1325.00 9.00 0.7 1529 -13.3
Palladium Fix<XPDFIX=> 318.00 3.00 0.9 365.0 -12.9
(Additional reporting by Michael Taylor and Maytaal Angel in
London)
