* Gold strikes record, China inflation at 32-mth high
* Coming Up: U.S. Consumer prices March; 1230 GMT
(Updates prices, adds Chinese data)
By Lewa Pardomuan
SINGAPORE, April 15 (Reuters) - Gold jumped to another
record high on Friday after the dollar fell to its lowest since
late 2009 against a basket of major currencies, taking silver to
a 31-year high, while inflation pressures in China also helped
lift bullion's appeal.
China's turbo-charged growth eased just a touch in the first
quarter, while its inflation jumped to a 32-month high, putting
pressure on the government to do more to rein in prices and keep
the economy on an even keel. []
Spot gold rose $1.66 an ounce to $1,474.56 ounce by
0315 GMT, having hit a record high of $1,479.01 an ounce.
Gold is still far below its all-time inflation-adjusted
high, estimated at almost $2,500 an ounce set in 1980 as a
result of heightened geopolitical pressure and hyper inflation.
"We see gold peaking at $1,500 an ounce. We think there
could be some more upside in gold in the short term, especially
in this environment of high inflation and rising oil prices,"
said" Natalie Robertson, commodities strategist at ANZ.
"There is a lot more upside," said Robertson, adding that
the peak of $1,500 would be reached by the end of 2011.
Dealers said worries about inflation had spurred steady
physical demand from China, where the government has vowed to
use all tools at its disposal, including bank reserve
requirements, interest rates and the yuan's exchange rate, to
wrestle inflation under control. []
Gold's rise to record high only attracted light selling
from Thailand and Indonesia, suggesting that investors remained
bullish on the outlook. Premiums for gold bars were steady at
between 70 cents and $1 an ounce in Singapore.
"Generally, higher CPI (consumer prices) could still be a
boost for gold. Going forward, we will be looking at inflation
figures from the U.S., and if we see an upside surprise, gold
can even go higher," said a dealer in Singapore.
"If you look at recent price action when China announces
interest rate hikes, it hasn't affected commodities that much.
Also, because of the fact that gold prices are already so
expensive, investors are look at silver as a store of value."
Spot silver rose as high as $42.41 an ounce, its
strongest since 1980, with physical dealers in Singapore also
reporting buying from speculators.
IShares Silver Trust said its holdings edged up to
10,974.26 tonnes by April 14 from 10,969.71 tonnes on April 13.
The holdings hit a record of 11,242.89 tonnes hit on April 8.
The dollar dropped to its lowest in more than a year, under
pressure from expectations the U.S. Federal Reserve will not cut
short its $600 billion debt-buying programme despite the recent
surge in oil prices. []
U.S. Consumer price inflation numbers due at 1230 GMT will
be closely watched for signs inflation may be rising faster than
the Fed may expect.
U.S. gold futures for June rose as high as $1,480.5
an ounce, a lifetime high.
U.S. crude futures extended gains for a third day on Friday,
supported by the dollar hovering at 16-month lows and no clear
end to fighting in Libya that has cut supplies from the OPEC
nation.
Japan's Nikkei stock average edged lower on Friday as chip
stocks fell after ratings downgrades, and the benchmark looked
set to round off a week of thin, choppy trade stuck in a tight
range.
Precious metals prices 0315 GMT
Metal Last Change Pct chg YTD pct chg Turnover
Spot Gold 1474.56 1.66 +0.11 3.88
Spot Silver 42.21 0.13 +0.31 36.78
Spot Platinum 1786.24 -0.25 -0.01 1.06
Spot Palladium 774.72 14.09 +1.85 -3.10
TOCOM Gold 3963.00 23.00 +0.58 6.28 50614
TOCOM Platinum 4819.00 -2.00 -0.04 2.62 9333
TOCOM Silver 113.30 2.40 +2.16 39.88 1889
TOCOM Palladium 2090.00 15.00 +0.72 -0.33 212
Euro/Dollar 1.4472
Dollar/Yen 83.40
TOCOM prices in yen per gram. Spot prices in $ per ounce.
(Reporting by Lewa Pardomuan; Editing by Ed Lane)
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