* 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
(Recasts, updates with quotes, closing prices, adds NEW YORK
to dateline)
By Frank Tang and Jan Harvey
NEW YORK/LONDON, Jan 26 (Reuters) - Gold climbed above $900
an ounce on Monday to the highest level in more than three
months as interest in bullion as a haven from risk and a weaker
dollar against the euro spurred buying.
Spot gold <XAU=> was at $906.90 an ounce at 1:52 p.m. EST
(1852 GMT), up 0.9 percent from the last trade $898.10 on
Friday. Earlier, it peaked at $915.30, its firmest level since
Oct. 10.
U.S. gold futures for February delivery <GCG9> settled up
$13.00, or 1.5 percent, at $908.80 an ounce on the COMEX
division of the New York Mercantile Exchange.
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 a nearly six-week low against the U.S. unit
earlier. []
Robert Lutts, president and chief investment officer of
Cabot Money Management, said he expected gold could rise to
$2,000 an ounce over time as investors sought to protect their
assets.
"The central banks are printing trillions of dollars worth
of currencies, and there is no real asset behind it. So, every
dollar in my pocket is going to be worth less and less every
day," said Lutts, who oversees $400 million of client assets.
Investors are seeking the safety of physical bullion as
other asset prices meet fresh volatility, analysts said.
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.
POLL
A 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.
Among other precious metals, silver <XAG=> was at $12.06 an
ounce, up 1.2 percent from its previous session close of
$11.92.
Platinum <XPT=> was at $964.00 an ounce, up 0.9 percent
from its last finish of $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 $190.00 an ounce, down 2.6
percent from its previous close on Friday $195.00.
(Reporting by Frank Tang; Editing by Christian Wiessner)
