* Dollar index slides after APEC meeting
* Call options on Dec gold futures at elevated levels
* Platinum, palladium, rhodium hit highest in over a year
(Updates throughout, changes dateline from TOKYO)
By Jan Harvey
LONDON, Nov 16 (Reuters) - Gold touched a fresh high above
$1,030 an ounce in Europe on Monday as momentum from recent
gains and a slide in the dollar index <.DXY> sparked fund buying
of the precious metal.
Gains in gold boosted interest in other precious metals,
with platinum, palladium and rhodium all hitting their strongest
in more than a year.
Spot gold <XAU> reached at peak of $1,132.95 an ounce, and
was bid at $1,130.60 an ounce at 1021 GMT, against $1,118.50
late in New York on Friday.
U.S. gold futures for December delivery <GCZ9> on the COMEX
division of the New York Mercantile Exchange rose $14.20 to
$1,130.90. Earlier they hit a record high $1,133.50.
The metal now looks poised for further gains, analysts
said, with a number of call options, or rights to buy, being
placed at elevated levels on U.S. December gold futures.
"There is no reason why over the next few days it can't have
a push towards that $1,200 mark before we get to the December
expiry for the options positions, which everyone's looking at,"
said Tom Kendall, precious metals strategist at Mitsubishi Corp.
"There is a large bunch of $1,200 calls December expiry,
which are acting as a bit of a magnet for prices at the moment."
Further weakness in the dollar could fuel further buying of
the precious metals, as funds turn to hard assets as an
alternative to the U.S. currency.
The dollar index slipped as traders sold the U.S. unit in
response to a lack of agreement over currencies at a summit of
the Asia Pacific Economic Cooperation (APEC) forum in Singapore
at the weekend. []
Weakness in the U.S. currency lifted other commodities, with
oil prices climbing more than $1 a barrel and base metals
rising. Gold often tracks crude prices, as it can be bought as a
hedge against oil-led inflation. []
SCRAP RETURNS
Demand for physical gold remained relatively lacklustre,
however, with the world's largest gold exchange-traded fund, the
SPDR Gold Trust <GLD>, saying its holdings fell 0.61 tonnes on
Friday from the previous day. []
Gold traders in India, the world's biggest bullion market
last year, shied away from fresh buying on Monday as the metal
hit record highs. More scrap is being returned to the market as
prices rise, they said. []
Gold's gains lifted other precious metals, with platinum
hitting $1,426.50 an ounce, its highest since September 2008 and
palladium reaching its strongest level in 15 months at $362.
"Positive economic data from Japan overnight and speculation
ahead of the release of (metals consultancy) Johnson Matthey's
interim report tomorrow lifted both metals to fresh multi-month
highs this morning," said TheBullionDesk.com analyst James
Moore.
"Both could continue higher, as their fundamentals remain
favourable," he added.
Lonmin PLC <LMI.L>, the world's third-biggest platinum
producer, expects prices of platinum group metals to gradually
firm next year before shortages kick in the following year, the
chief executive said on Monday. []
Later, platinum <XPT=> was at $1,422.50 an ounce against
$1,390, while palladium <XPD=> was at $361 against $353.50.
Elsewhere rhodium <RHOD-LON> hit a 13-month high at $2,250.
Silver <XAG=> was bid at $17.80 an ounce against $17.41.
The world's largest silver-backed exchange-traded fund, the
iShares Silver Trust <SLV>, said its bullion holdings rose 30.56
tonnes, or 0.3 percent, on Friday from the previous business day
to a record 8,954.08 tonnes. []
For graphic of gold's rise to record highs, click on
http://graphics.thomsonreuters.com/119/GLD/GLD_TMLN1009.html)
(Reporting by Jan Harvey; Editing by Keiron Henderson)
