Gold hits new high on inflation worry, Europe debt

Tue Nov 9, 2010 5:19am GMT
 

By Rujun Shen

SINGAPORE (Reuters) - Gold rose to a record high for the fourth straight session on Tuesday, as inflation worries and euro zone sovereign debt woes continue to lure investors to precious metals.

Spot silver hit a new 30-year high just below $28, and palladium extended gains to a new nine-year peak of

$712.75.

Spot gold rose to an all-time high of $1,412.75 an ounce, before easing to $1,410.45 by 0339 GMT.

"Liquidity is being thrown into the market place, the dollar is being debased as a way the U.S. government can get out of debt obligations, while Asian central banks keep buying dollars and keep their currencies cheap. Hard assets are just going to continue to benefit," said a Singapore-based trader.

"There is a good arguement for these metals go to up. There is a lot of momentum to buy."

The target for this round of rally could be $1,475 or even $1,500, in the next three weeks, the trader added.

Holdings in the world's largest gold-backed exchange traded fund, SPDR Gold Trust, gained 2.43 tonnes to 1,294.196 tonnes, their highest so far this month.   Continued...

<p>Bars of 250 gram fine gold are stored at a plant of gold refiner and bar manufacturer Argor-Heraeus SA in the southern Swiss town of Mendrisio, November 13, 2008. REUTERS/Arnd Wiegmann</p>
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