* Dollar hits 2009 low vs euro; single currency breaks $1.47
* Indian gold buyers trickling through, traders say
* Silver, platinum hit multi-month highs as confidence rises
(Updates throughout, changes dateline from TOKYO)
By Jan Harvey
LONDON, Sept 16 (Reuters) - Gold hit 18-month highs on
Wednesday as the dollar's slide to 2009 lows versus the euro
sparked buying of the metal as an alternative asset, helping
lift silver and platinum to multi-month peaks.
The precious metal now has its sights set on a new all-time
high above $1,030 an ounce, traders said.
Spot gold <XAU=> rose to a high of $1,017.75 an ounce and
was at $1,015.55 an ounce at 0924 GMT against $1,005.90 late in
New York on Tuesday.
"(We have) broken through $1,015, so we ought to test the
previous highs," said Afshin Nabavi, head of trading at MKS
Finance in Geneva. "It is currencies that started the game, but
it looks like it is not over yet."
U.S. gold futures for December delivery <GCZ9> on the COMEX
division of the New York Mercantile Exchange rose $11.40 to
$1,017.70 an ounce.
The dollar tumbled to its weakest this year versus the euro,
with the single currency breaking $1.47 for the first time since
December. The dollar came under pressure as investors moved to
notionally higher-risk currencies. []
Better-than-expected U.S. retail sales data and a statement
from Federal Reserve chairman Ben Bernanke that the U.S.
recession was most likely over on Tuesday have boosted interest
in assets seen as higher risk. []
World stocks hit 11-month highs on the news, while European
shares also rose. [] []
Currency traders will be closely watching U.S. data due
later in the session for fresh clues as to the outlook for the
economy, including the August consumer price index and
industrial production numbers, and September housing data.
The CPI data at 1230 GMT will also be watched for signs of
growing inflation, against which gold can be bought as a hedge.
Citigroup analyst David Thurtell said the current rally was
"largely currency based, but the gold inflation bugs will be
getting excited too".
PHYSICAL DEMAND PICKS UP
Physical demand for gold picked up in Asia, home to some of
the world's largest bullion markets, despite high prices having
discouraged consumers throughout the year.
"India is still buying despite the high prices. Maybe they
are afraid that prices will go up again," said a dealer in
Singapore. []
Gold's rally helped lift other precious metals, with silver
<XAG=> and platinum <XPT=> -- both of which are largely
industrial in use -- also hitting multi-month highs as base
metals rose on the more positive economic outlook. []
Silver prices rose to a 12-month high of $17.31 an ounce,
and were later at $17.28, against $16.97 late on Tuesday. Its
ratio to gold -- which measures its value compared to the yellow
metal -- fell to 58.8 from around 64.5 a month ago.
Platinum hit a peak of $1,338, its firmest since September
last year, and was later at $1,329 against $1,323, while
palladium <XPD=> was at $294.50 an ounce against $291.50.
ETF Securities said in a daily report its London platinum
ETC <PHPT.L> holdings rose more than 10,500 ounces on Tuesday,
or 3 percent. Its London palladium ETC <PHPD.L> hit a record
high of 491,063 ounce on Monday, up 8.5 percent week-on-week.
Commerzbank technical analyst Karen Jones said in a note
that platinum's gains last week set the metal up for a fresh
rise.
"The close above $1,307 has completed a longer term bullish
pattern with an upside measured target of $1,539," she said.
"The pattern took five months to complete and the target is
achievable by February 2010."
Technical analysts study historical chart patterns to
determine future moves.
(Reporting by Jan Harvey; Editing by Anthony Barker)
