* Gold may target $1,404/oz -technicals []
* Coming up: U.S. weekly initial jobless claims; 1230 GMT
By Rujun Shen
SINGAPORE, Oct 14 (Reuters) - Gold prices hit new record
highs on Thursday, fuelled by dollar weakness as hopes of more
monetary easing by the U.S. Federal Reserve continued to run
high, aided by Singapore's move to let its currency appreciate.
Silver <XAG=> rose to a fresh 30-year top at $24.38 an
ounce, and palladium <XPD=> hit $603, its highest in more than
nine years, as the sinking dollar unleashed a broad rally in
commodities.
The dollar fell to its lowest against a basket of
currencies in ten months, after Singapore let its currency
appreciate, accentuating the sell-off in the greenback. []
"It's the old story -- the talk on the U.S. stimulus
package, and too much hot money around. What should you do?
There is practically no interest rate, so everyone is rushing
into commodities and the stock market," said Ronald Leung, a
physical dealer at Lee Cheong Gold Dealers Ltd in Hong Kong.
"Until the interest rates turn around, we won't see a sharp
drop in prices. For the short term, gold is still bullish.
We'll reach $1,400 sooner than we expected."
Spot gold <XAU=> rose to an all-time high of $1,379.35 an
ounce, and eased to $1,377.25 by 0338 GMT.
U.S. gold futures for December delivery <GCZ0> also hit a
new record high of $1,380.3, and was trading at $1,378.7.
Buying interest in gold rebounded from a dip at the end of
last week. The Relative Strength Index, or RSI, rose to a
one-week high of 80.9, suggesting an overbought market.
But holdings in the SPDR Gold Trust <GLD.P> slipped more
than two tonnes to 1,285.200 tonnes by Oct 13, their lowest in
more than two months. []
Holdings in the iShares Silver Trust <SLV> rose to a new
record high of 10,125.17 tonnes.
Gold is expected to rally towards $1,404 per ounce as it has
climbed above a consolidation range between $1,324.85 and
$1,364, said Wang Tao, a Reuters market analyst.
[]
For a graphic of the 24-hour gold technical outlook:
http://graphics.thomsonreuters.com/WT/20101410082746.jpg
The physical market is seen holding off on action after the
rapid ascent of prices.
"Prices have risen too fast today. Selling is not
aggressive, as people bet on further price rise. Buying is more
cautious at this level," said Leung of Lee Cheong.
In China, record high prices may curb demand for jewellery,
but investment needs are seen rising with prices, traders said.
Spot platinum <XPT=> was the only metal in the complex to
shy away from record levels, up 0.2 percent to $1,705.75 an
ounce.
Precious metals prices at 0338 GMT Metal Last
Change Pct chg YTD pct chg Turnover Spot Gold 1377.25
6.35 +0.46 25.70 Spot Silver 24.29 0.40
+1.67 44.33 Spot Platinum 1705.75 3.50 +0.21
16.27 Spot Palladium 599.50 9.05 +1.53 47.84 TOCOM
Gold 3601.00 23.00 +0.64 10.49 37495 TOCOM
Platinum 4493.00 6.00 +0.13 2.56 10023 TOCOM
Silver 63.70 1.50 +2.41 23.21 1549 TOCOM
Palladium 1569.00 2.00 +0.13 34.68 304
Euro/Dollar 1.4082 Dollar/Yen 81.16 TOCOM prices
in yen per gram. Spot prices in $ per ounce.
(Editing by Clarence Fernandez)
