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Gold hits record above $1,170 an ounce

* Gold priced in currencies other than the dollar also reaching historic highs

LONDON: Gold hit a record high at $1,170.55 an ounce on Monday as dollar weakness pushed the metal through key technical resistance levels, fuelling momentum buying after the metal’s sharp run higher earlier this month.

Spot gold was bid at $1,168.90 an ounce at 1418 GMT, against $1,148.20 late in New York on Friday. US gold futures for December delivery on the COMEX division of the New York Mercantile Exchange rose $22.50 to $1,169.30 an ounce.

The precious metal has rallied to a series of record highs since news that India bought 200 tonnes of gold from the IMF broke in early November. Since then a number of other central banks have announced they too are buying gold.

Weakness in the US unit boosts gold’s appeal as an alternative asset and makes dollar-priced commodities cheaper for holders of other currencies. Strong oil prices raise the metal’s appeal as an inflation hedge.

Non-dollar gold: Gold priced in currencies other than the dollar were also reaching historic highs on Monday, with gold priced in euros rising to a nine-month peak of 780.21 euros an ounce, within 15 euros of a record high.

Sterling-priced gold reached a record high of 704.78 pounds an ounce, while gold denominated in Japanese yen rose to a historic peak of 103,788 yen an ounce, according to Reuters data going back to 1987.

Elsewhere, options traders are betting gold will hit $1,200 an ounce or higher by early next year. Strong options interest could in turn lift underlying prices further into uncharted territory.

On the physical side of the market, Indian gold buying cooled after picking up slightly last week as prices hit record highs and the flow of scrap eased, dealers said. Gold’s gains lifted other precious metals, with platinum hitting its highest since September 2008 at $1,472.50, and silver its strongest since July 2008 at $18.88 an ounce.

Spot platinum was later at $1,467.50 an ounce against $1,441, while palladium was at $368.50 against $361. Spot silver was bid at $18.80 an ounce against $18.46.

ETF Securities said holdings of its platinum- and palladium-backed exchange-traded commodities rose to record highs on Friday.

However, both ETF Securities and Zurich Cantonal Bank said the holdings of their gold-backed exchange-traded products dipped last week.

Copper hits 14-mth high: Copper surged to 14-month highs on Monday as investors bet on economic and demand recovery, but a 40 percent fall in China’s refined copper imports was expected to cap prices.

Three-month copper on the London Metal Exchange traded at $6,970 a tonne in official rings from Friday’s last bid at $6,845 tonne.

Earlier on Monday the metal used in power and construction touched $7,010 a tonne, the highest since September 2008 and a gain of about 125 percent since January.

Stocks of copper in LME warehouses at 424,925 tonnes are up abou 65 percent since the middle of July and the highest since April.

Aluminium stocks at above 4.59 million tonnes are holding near the record high of 4.629 million touched on September 16.

Stainless steel ingredient nickel traded at $16,950 a tonne from $16,600, zinc at $2,290.5 from $2,255, lead at $2,395 from $2,346 and tin was quoted at $15,000/ $15,050 from Friday’s last bid at $14,950 a tonne. reuters

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