* Euro zone debt back in the fray, eyes on G20
* Traders target $1,475 ounce
(Updates prices, adds graphics)
By Pratima Desai
LONDON, Nov 9 (Reuters) - Gold surged to a record high for
the fourth day running on Tuesday, fuelled by renewed concern
over high sovereign debt in euro zone countries such as Ireland
and Greece and inflationary pressures.
Silver <XAG=> touched $28.46 an ounce, the highest since
March 1980, palladium <XPD=> saw $728.22 an ounce, its highest
since April 2001. Platinum <XPT=> hit $1,790 an ounce its
highest since July 2008.
Spot gold <XAU=> hit $1,422.30 a troy ounce. The precious
metal was bid at $1,418.80 an ounce at 1256 GMT from $1,409.09
late in New York on Monday. U.S. gold futures <GCZ0> also hit a
record $1,422.10 an ounce.
"We have a combination: inflation fears, currency market
uncertainty, fears about the financial strength of some
countries," said Alexander Zumpfe of Heraeus Metals.
Zumpfe said remarks by World Bank President Robert Zoellick
that leading economies should consider readopting a modified
gold standard, had also helped reignite interest in the precious
metal. []
Worries about price pressures were reinforced last week by
the U.S. Federal Reserve, which announced further monetary
policy easing to help boost economic growth in the world's
largest economy, the United States.
"Inflation concerns and euro zone debt worries have helped
accentuate the surge this week initiated by the weakness in the
dollar," said investment bank Fairfax in a note.
News that the Fed would buy back $600 billion of U.S.
government bonds initially weakened the dollar and propelled
commodity prices higher, particularly gold, which has gained
nearly 30 percent this year so far.
G20 CONCERNS
Also on the radar is this week's G20 summit. Officials from
Germany, Brazil, China and South Africa are among those
expressing concern that the Fed's policy could weaken the dollar
and drive up commodity prices. []
If the G20 fails to defuse global tensions, it may heighten
investor concerns that policymakers are drifting further apart,
leaving the world economy vulnerable.
"There is a lot of uncertainty ahead of the G20 meeting. If
there are no surprises we may see a correction afterwards," said
David Wilson, analyst at Societe Generale.
"Gold is using any excuse to go higher."
Traders think the target this rally is $1,475 an ounce.
"Beyond that $1,500 is only a short ride," one trader said,
adding high seasonal physical demand was another factor behind
the rise in precious metal prices.
Investor interest can be seen in the holdings in the world's
largest gold-backed exchange-traded fund, SPDR Gold Trust <GLD>,
which gained 2.43 tonnes to 1,294.196 tonnes, their highest so
far this month. []
That interest is reinforced by gold in other currencies.
Gold <XAUEUR=R> in euros hit the highest since June at
1,021.84 euros per ounce, in Swiss francs <XAUCHF=R> 1,369.33
francs a ounce, also the highest since June. Gold in sterling
<XAUGBP=R> touched a record high 880.37 sterling an ounce.
Spot silver was bid at $28.38 an ounce from $27.69 late in
New York on Monday and palladium was at $725.50 from $705.22.
Autocatalyst precious metal platinum was bid at $1,784.24 an
ounce compared with $1,771.50 late in New York on Monday.
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Graphic on S&P 500 priced in gold:
http://graphics.thomsonreuters.com/F/11/GLD_SPX1110.gif
Greek, Irish bond yield spread http://r.reuters.com/tuk54q
G20 battle lines: http://r.reuters.com/jux34q
Basel III; rule reshaping: http://r.reuters.com/zys68p
Gold price performance: http://link.reuters.com/juz44q
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(Reporting by Pratima Desai; Editing by Alison Birrane)
