* Gold reaches highest since Oct 10 on safe haven demand
* Gold hits record in euro, sterling terms
* SPDR Gold Trust bullion holdings rise to all-time high
(Updates prices, adds comment, adds Reuters poll detail)
By Jan Harvey
LONDON, Jan 26 (Reuters) - Gold climbed above $900 an ounce
on Monday to its highest level in more than three months, as
interest in bullion as a haven from risk spurred buying, and the
dollar weakened against the euro.
Spot gold <XAU=> was at $903.15/904.75 an ounce at 1358 GMT,
up from $898.10 in New York late on Friday. Earlier it peaked at
$908.65, its firmest level since October 10.
U.S. gold futures for February delivery <GCG9> on the COMEX
division of the New York Mercantile Exchange were up $7.50 at
$903.30.
Gold priced in euros <XAUEUR=R> reached an all-time high of
701.55 an ounce, and in sterling <XAUGBP=R> of 661.55 pounds, as
fears over the global economic slowdown and volatility in other
asset prices spurred buying. []
"Gold is rising on the fallout from the renewed banking
crisis," said VM Group analyst Matthew Turner. "The banking
crisis is bad for share prices, and creates fear and panic. Some
investors are thinking gold is the safest option."
The dollar, weakness in which usually benefits gold, also
softened against the euro on Monday as the single currency
recovered from an earlier near six-week low against the U.S.
unit. []
Gold was already benefiting from increased interest from
investors seeking a haven from risk, amid fears over the
deteriorating economic outlook.
An International Monetary Fund official said on Sunday that
the IMF will cut its 2009 growth forecast again by between 1
percent and 1.5 percent as economic conditions weaken
further. []
Against this backdrop, demand for physical gold both from
investors in smaller products such as coins and bars and from
exchange-traded funds remains firm.
Investors are seeking the safety of physical bullion as
other asset prices met fresh volatility, analysts said.
"In times of economic crisis, falling equity markets and
mounting aversion to risk, physical gold is preferred as the
safest form of investment," Commerzbank analyst Eugen Weinberg
said.
POLL
Reuters' biannual poll of analysts' price forecasts showed
most expect gold prices to hold their ground this year, though
platinum, palladium and silver prices are seen falling.
<PREC/POLL> <COMMODITYPOLL15>
The poll showed a median gold price forecast for this year
of $862.50 an ounce, up 3.5 percent from the median 2009
forecast in Reuters' last regular survey in July, and down only
marginally on last year's average price of $871.21 an ounce.
The world's largest gold-backed ETF, New York's SPDR Gold
Trust <GLD>, which issues securities backed by physical stocks
of the precious metal, said its holdings rose 1.6 percent to an
all-time high of 832.57 tonnes on Friday. []
The trust's bullion holdings have climbed more than 52
tonnes or nearly 7 percent since the beginning of the year.
Among other precious metals, silver <XAG=> firmed in line
with gold to $11.98/12.06 an ounce from $11.92.
Platinum <XPT=> edged down to $952/957 an ounce from $955.50
an ounce in New York late on Friday.
Reuters' precious metals poll showed little consensus on the
supply and demand balance for platinum in 2009, with forecasts
ranging from a surplus of more than half a million ounces to a
deficit of 140,000 ounces. []
Analysts disagree on how much demand will fall this year,
and how far producers can scale back output in response to lower
output.
Palladium <XPD=> eased to $191/196 an ounce from $195.00.
(Editing by Peter Blackburn)
