PRECIOUS-Gold hits $1,300/oz record; silver a 30-yr top

                                
 * LBMA delegates see gold above $1,400, Barrick at $1,500
                                
 * Charts suggest correction in the short term
                                
 * Euro falls from a five-month low vs dollar.
(Recasts with gold slipping off peak, updates prices, adds to
dateline, byline.)
                                
 By Carole Vaporean and Humeyra Pamuk
                                
 NEW YORK/LONDON, Sept 27 (Reuters) - Gold hit a record high
of $1,300 an ounce on Monday, extending a two-week rally of
fresh records on concerns over an economic recovery, before
easing off session highs as the dollar rose.
                                
 Silver tracked the yellow metal higher, rising to a 30-year
high but also slipped from the previous high. Silver has gained
nearly 30 percent so far 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. But, some add that it may correct its rapid rise in
the short term.
                                
 "Momentum is still very much in favour of gold," said
Jesper Dannesboe, senior commodity strategist at Societe
Generale. "I wouldn't dare go against it and definitely
wouldn't want to be short, there's good appetite to buy," he
said.
                                
 Spot gold <XAU=> changed hands at $1,297.30 an ounce by
1:19 p.m. EDT (1719 GMT), after hitting an historic $1,300 an
ounce, up from $1,295.60 quoted late in New York on Friday.
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 In the near term, gold slipped off its early highs when the
euro fell from a five-month high against the dollar, as nagging
worries about fiscal debt problems in euro zone countries like
Ireland gave traders an excuse to consolidate gains.
[ID:nN27410546]
                                
 Bullion's rally accelerated last week after the U.S.
Federal Reserve signaled 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]
                                
 "Every country in the world is giving signals that it could
print money...what else are you going to trust apart from
gold," said Sean Corrigan, chief investment strategist at
Diapason Commodities Management.
                                
 U.S. gold futures for December delivery <GCZ0> was up $0.70
an ounce at $1,298.80 an ounce, after rising earlier to
$1,301.30, just short of an all-time high at $1,301.60 hit on
Friday.
                                
 Industry experts see fresh highs for bullion. Delegates at
the London Bullion Market Association annual conference
forecast a price of $1,406 an ounce by September 2011.
[ID:nLDE68Q0JF]
                                
 The world's biggest miner of the yellow metal, Barrick Gold
<ABX.TO> said bullion could see above $1,500 an ounce next
year. [ID:nLDE68Q0QM]
                                
 Central banks capping their gold sales would be another
factor to support the prices. On Monday, Germany's Bundesbank
said it will keep its gold sales to a minimum in the next 12
month. [ID:nFAE005806]
                                
 TECHNICAL RESISTANCE?
                                
 In the shorter term, charts show bullion's rally might face
resistance around $1,315-1,325 an ounce.
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For a technical analysis on gold, click: [ID:nSGE68Q022]
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 "I wouldn't call it a safe trade because everyone's has it
now," Dannesboe said. "It's been running for quite some time, I
believe a correction is due."
                                
 A potential correction could be limited, traders said, with
the physical market still buoyant despite record high prices.
                                
 "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."
[ID:nSGE68Q0CU]
                                
 Silver <XAG=> jumped to its highest in three decades at
$21.61 an ounce, but eased to $12.45 by the New York midday.
                                
 "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. [ID:nSGE68Q01C]
                                
 Silver's main sources of demand are for use in industrial
applications such as semi-conductors and jewelry. Spot platinum
<XPT=> slipped to $1,630 an ounce versus Friday's last quote of
$1,637.70 an ounce. Spot palladium <XPD=> was at $551 an ounce,
down from $556.70 an ounce previously.
 (Additional reporting by Lewa Pardomuan in Singapore, Graphic
by Catherine Trevethan; Editing by Marguerita Choy)