* Gold underpinned by hopes of more central bank buying
* SPDR Gold holdings inch up 0.5 pct
* Platinum rises to highest since late August, 2008
* http://graphics.thomsonreuters.com/119/MKT_GLD$OIL1109.gif
(Updates prices and comments)
By Humeyra Pamuk
LONDON, Nov 26 (Reuters) - Gold fell from a record high hit
on Thursday as the dollar lifted from its lows, but the metal
was still expected to seek higher ground due to prospects for
central bank buying and further dollar weakness.
Spot gold <XAU=> hit a record high of $1,194.90, but had
retreated to $1,181.60 an ounce by 1533 GMT versus its last
quote of $1,190.30 in New York late on Wednesday.
"The overall picture remains quite bullish," said Piri
Kutluoglu, MKS trader in Switzerland. "It seems we could be
hitting the $1,200 an ounce level pretty soon," he said.
Various central banks expressing their interest in buying
gold and persistent dollar weakness were the major drivers to
boost bullion to fresh peaks, Kutluoglu said.
Bullion has risen more than 37 percent this year, including
a 13 percent rise in November alone on dollar weakness,
expectations of further reserve diversification by central banks
and fears of inflation next year.
The International Monetary Fund said on Wednesday it had
sold 10 tonnes of gold to the Central Bank of Sri Lanka, a part
of the 403.3 tonnes approved for sale by the fund's executive
board in September. The fund has already sold 202 tonnes to the
central banks of India and Mauritius. []
"It appears that central banks are prepared to expand their
gold reserves despite the current high gold price level, which
in turn increasingly attracts private investors back to the
market," Eugen Weinberg, analyst at Commerzbank said in a
research note.
The dollar edged up from 14-year lows against the yen as
renewed risk aversion prompted investors to shed riskier assets,
giving pause to broader dollar selling. Against a basket of
currencies, the U.S. currency <.DXY> was up 0.68 percent. []
U.S. December gold futures <GCZ9> also rose to a fresh high
of $1,195.00 per ounce. Futures were last at $1,182.20 an ounce,
compared with $1,187.00 on the COMEX division of the New York
Mercantile Exchange.
Gold has soared to new highs five times in the last ten
trading sessions, and three times this week.
Traders said Dubai's move to restructure its biggest
corporate debtor, Dubai World, and delay some of the company's
$59 billion of liabilities had an indirect impact on gold as it
moved the dollar. []
EVERYBODY BULLISH
Central Banks, particularly in Asia, increasingly looking to
diversify their foreign exchange reserves after India's purchase
of 200 tonnes earlier this month, are a major factor lifting the
yellow metal.
"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...everybody is looking at how
much money they will invest in gold," he said.
Any decision on whether India would buy more gold from the
IMF would be taken by the Reserve Bank of India, Indian finance
ministry official Anup Pujari, joint secretary for multilateral
institutions, told Reuters on Thursday. []
For a graphic of reserves held by India and China, click:
http://graphics.thomsonreuters.com/119/IN_CHRSV1109.gif
Poon said there was a lot of physical demand despite high
prices, with Asian buyers seen in the market.
For a timeline on gold prices, click:
http://graphics.thomsonreuters.com/119/GLD/GLD_TMLN1109.html
"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.
U.S. markets will be closed on Thursday for the Thanksgiving
holiday. Traders said volume was not large, with many players
keeping to the sidelines due to the Thanksgiving holiday.
Gold's rally pulled other precious metals higher, with
platinum <XPT=> rising as high as $1,480.00 per ounce, its
highest since late August, 2008.
Silver <XAG=> was at $18.48 an ounce versus $18.82 an ounce
while palladium <XPD=> was at $365.50 an ounce versus $370 an
ounce on Wednesday.
(Additional reporting by Chikako Mogi in Tokyo, Editing by
Veronica Brown and Sue Thomas)
((humeyra.pamuk@reuters.com; Reuters Messaging:
humeyra.pamuk.reuters.com@reuters.net; +44 20 7542 9736))
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