LONDON, Oct 6 (Reuters) - Spot gold rallied to new records
on Wednesday, eyeing the $1,350 level, as anticipation of
further easing by the U.S. Federal Reserve eroded investor
confidence in currencies, and renewed its safe-haven appeal.
"The trust in the FX markets and currencies in general is
disappearing. Now with the dollar weakness, it's strong support
for gold, as is safe-haven buying which is mainly investment
driven," a Europe-based trader said.
Economic uncertainties and weak dollar have helped gold
rally 8 percent from a month earlier and 23 percent so far this
year. Traders and analysts expected the momentum to stay after a
surprise interest rate cut from the Bank of Japan fuelled
anticipation of more monetary easing from the Fed.
[]
The dollar remained close to multi-month lows against the
euro, also lending support as a weaker dollar makes gold cheaper
for holders of other currencies. [] []
PRICES
* Spot gold <XAU=> was bid at $1,348.80 at 721 GMT from
$1,338.70 late in New York on Tuesday. It earlier reached a new
record at $1,349.80.
* Silver <XAG=> was at $22.97 from $22.78. It touched a new
30-year peak at $23.06.
* Platinum <XPT=> at $1,705 from $1,693.75, having tipped
$1,705.50, a new five-month high.
* Palladium <XPD=> at $587.50, its highest since March,
2008, from $574.60
DATA/EVENTS
* Challenger, Gray & Christmas Inc. releases its report on
job cuts for September at 1130 GMT []
* Automatic Data Processing (ADP) releases its September
employment report at 1215 GMT.[]
* Treasury Secretary Timothy Geithner speaks at the
Brookings Institution at 1300 GMT. []
* Euro zone revised gross domestic product data is due at
0900 GMT. []
* German industrial orders for August are due at 1000 GMT.
[]
MARKET NEWS
* Stocks and metals rose on Wednesday while the dollar and
Japanese bond yields fell after monetary easing moves by the
Bank of Japan spurred expectations of a new round of central
bank action to boost feeble economies. []
* The dollar stayed near eight-month lows on the euro and
edged towards a 15-year trough on the yen on Wednesday, hurt by
expectations of Federal Reserve easing after Japan lined up its
own reflation tools. []
* Oil was steady near a five-month high on Wednesday as
optimism that central banks will shore up economies boosted
Asian equity markets, countering an industry report showing U.S.
crude stockpiles jumped more than forecast last week. []
* U.S. stocks rallied to nearly a five-month high on Tuesday
on growing conviction that central banks will do even more to
bolster struggling economies worldwide. []
* European stock index futures pointed to a higher open on
Wednesday, as stocks were poised to add to the previous day's
rally and track gains on Wall Street and in Asia, sparked by
hopes of further monetary stimulus. []
FUNDAMENTALS
* India December gold futures <MAUZ0> on the Multi Commodity
Exchange (MCX) extended gains on Wednesday morning to a new
record high of 19,538 rupees per 10 grams, surpassing the
previous peak of 19,537 rupees struck in the previous session.
[]
* Bolstered by a surprising September stock-market rally,
billionaire hedge fund manager John Paulson's flagship Advantage
Plus fund jumped more than 12 percent last month, recovering
this year's losses. Paulson's other portfolios, including the
Recovery, Gold and Credit Opportunities funds, all posted
positive returns in September. []
* The world's largest silver-backed exchange-traded fund,
the iShares Silver Trust <SLV>, said its holdings rose to a
record high of 9,877.20 tonnes by Oct. 5 from 9,782.88 tonnes on
Oct 4. []
* The handful of labour contracts due to expire later this
year at sizeable copper operations in Chile will hold that
market's attention in coming weeks as tight supplies remain a
concern and prices eye record highs. []
TECHNICALS
* Gold support at $1,325 an ounce, resistance at $1,350 and
14-day RSI at 85.9.
* Platinum support at $1,665 an ounce, resistance at $1,720
and 14-day RSI at 78.9.
* Silver support at $22.34 an ounce, resistance at $23.50
and 14-day RSI at 83.4.
For related news and prices, click on the codes in brackets:
Spot gold/silver <XAU=> <XAG=> Platinum/palladium <XPT=><XPD=>
Gold lease rates <LGLR> Comex gold futures <0#GC:>
Europe/Asia prices <GOLD/EU1> <GOLD/EU2> <GOLD/ASIA1>
CBOT 100 oz gold futures <0#ZG:>
RELATED NEWS AND OTHER TOPICS
Precious metals news [] All metals news []
Metals summary [] Index of summaries []
All commodities news [] Metals diary []
Ldn Bullion Mkt Assoc <LBMA01> Foreign exchange rates <FX=S>
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