(Updates prices, adds quotes)
SINGAPORE, March 14 (Reuters) - Spot gold was on Friday
within sight of the $1,000 an ounce barrier broken on the
futures market after the dollar hit another record low against
the euro, boosting the metal's appeal as an alternative
investment.
Gold has gained nearly 20 percent in 2008, driven by buying
from investors and speculators on expectations of further
interest rate cuts in the United States and record high oil
prices, which raised the metal's appeal as an alternative
investment.
Spot gold <XAU=> rose to $995.50/995.80 an ounce from
$991.00/991.80 late in New York. It had powered to another
record high of $999.90 an ounce on Thursday.
"Providing oil prices maintain a dizzy height and the U.S.
continues to suffer, it looks extremely likely that gold will
test the $1,000 level and likely break through it," said Darren
Heathcote of Investec Australia in Sydney.
"But it may see some profit taking as we get there, which
may hold its rise initially before possibly progressing on to
$1,004 to $1,005 an ounce," said Heathcote, who expected gold
to hit $1,000 later on Friday.
Gold futures for April delivery <GCJ8> on the COMEX
division of the New York Mercantile Exchange added $2.4 an
ounce to $996.3 an ounce, having struck a record $1,001.50 on
Thursday.
Gold hit $850 an ounce in January 1980 as high inflation
linked to strong oil prices, plus the Soviet intervention in
Afghanistan and the impact of the Iranian revolution, prompted
investors to buy the metal.
After adjusting for inflation, the 1980 high is equivalent
to $2,119.30 an ounce at 2007 prices, according to precious
metals consultancy GFMS Ltd.
"If the dollar continues to weaken, then, rather like the
price of oil, it'll be a long time before we see lower gold
prices," said Angus Campbell, head of sales at Capital Spreads,
in a note.
"Momentum is also being provided by many investors running
to gold as a safe haven in the face of credit woes and high
inflation."
The dollar hit a record low against the euro
[] while oil jumped to a record $111 a barrel on
Thursday, extending a rally that has added more than 25 percent
to prices in just over a month. []
Spot platinum <XPT=> fell to $2,090/2,100 an ounce from
$2,098/2,108 an ounce. Spot palladium <XPD=> eased to $507/512
an ounce from $508/513 an ounce.
Silver <XAG=> edged up to $20.56/20.61 an ounce from
$20.42/20.47 an ounce.
Precious metals prices at 0039 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 994.80 -0.10 -0.01 19.47
Spot Silver 20.56 0.02 +0.10 39.20
Spot Platinum 2090.00 -8.00 -0.38 37.50
Spot Palladium 507.00 -1.00 -0.20 37.77
TOCOM Gold 3255.00 53.00 +1.66 6.37
14416
TOCOM Platinum 6645.00 77.00 +1.17 24.46
2516
TOCOM Silver 674.20 12.30 +1.86 24.62
298
TOCOM Palladium 1711.00 35.00 +2.09 26.65
1109
Euro/Dollar 1.5602
Dollar/Yen 100.94
TOCOM prices in yen per gram, except TOCOM silver which is
priced in yen per 10 grams. Spot prices in $ per ounce.
(Reporting by Lewa Pardomuan)
(Additional reporting by Nick Trevethan; Editing by Alan
Raybould)
