* U.S. consumer confidence lowest since February
* Dollar hits fresh five-month low versus euro
* Quantitive easing by Fed on the cards
(Recasts, updates prices, adds quote)
By Maytaal Angel
LONDON, Sept 28 (Reuters) - Gold hit a new record high on
Tuesday as a weaker than forecast U.S. consumer confidence
reading boosted the metal's safe haven appeal and sent the
dollar to fresh five-month lows versus the euro.
Silver edged back near a 30-year high, while platinum and
palladium ticked higher.
Spot gold <XAU=> rose to $1,307.70 an ounce, its highest
ever level. It traded at $1,307.00 at 1530 GMT versus $1,296.05
late in New York on Monday.
U.S. gold futures for December delivery <GCZ0> rose to a
record $1,309.20 an ounce, and later traded up $9.70 to
$1,308.50 an ounce.
The Conference Board said earlier a deteriorating labour
market and business conditions drove its index of consumer
attitudes to 48.5 in September, its lowest level since February.
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"Our economists were pessimistic but expected a
drop to 50 only, far below 50 is a big disappointment," said
Daniel Briesemann, analyst at Commerzbank.
He added the reading, coupled with other weak data points on
the U.S. economy, mean there will likely be more quantitative
easing measures by the Federal Reserve before the year-end.
Data earlier this session showed U.S. single family home
prices dipped in July while the Richmond Fed's composite
manufacturing index sank in September. []
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The dollar hit fresh five-month lows versus the euro after
the confidence data, making dollar-priced gold cheaper for
European investors. []
Many traders expect the dollar's downtrend to continue on a
view that any future quantitative easing, even in a modest form,
would probably still be more aggressive than moves by other
central banks.
"The growing realisation that ultra loose monetary policies
may debase currencies is leading to continuing safe haven demand
for gold. Gold is the only currency that cannot be debased and
its value is not dependent on the performance of politicians and
central bankers," said analysts at GoldCore in a note.
"Problems with the periphery economies in the eurozone are
not abating and appear to be spreading," they added.
POISED TO BENEFIT
Investor attention will now turn to manufacturing purchasing
manager indexes for a number of key economies and a U.S. core
inflation reading due on Friday.
Gold is poised to benefit if the data fails to allay fears
over the health of the global economy, especially given new
concerns over Ireland's debt and fresh speculation that Spain
may be downgraded by Moody's. []
"I expect gold will make new highs during the final quarter
of this year, driven by the threat of quantitative easing and
more demand from the jewellery industry," said Quantitative
Commodity Research analyst Peter Fertig.
In industry news, the average forecast of delegates polled
at the end of London Bullion Market Association annual
conference said gold prices are likely to stand at $1,450 an
ounce in a year's time. []
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Take a Look on LBMA conference in Berlin:
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Silver <XAG=> rose to $21.65, its higest point in three
decades. It later traded at $21.62 an ounce versus $21.38 late
in New York on Monday.
The London Metal Exchange and LCH.Clearnet said on Tuesday
they aim to introduce a clearing service for over-the-counter
trading in silver next year, following the launch of their gold
clearing service in November. []
Platinum <XPT=> was at $1,635 versus $1,627.35 while
palladium <XPD=> was at $556.50 versus $548.68.
(Editing by Sue Thomas)
