* Gold prices hit record for fifth straight session
* Gold:silver ratio falls to 28-year low below 33
* Angloplat Q1 output dips but keeps FY production target
(Updates throughout, changes dateline, pvs SINGAPORE)
By Jan Harvey
LONDON, April 21 (Reuters) - Gold prices hit record highs
for a fifth session on Thursday and silver rallied to its
strongest since 1980 as the dollar slid to a three-year low
against a basket of major currencies and oil prices rallied.
The action in the oil and currency markets is adding fuel to
a rally sparked by concerns over the U.S. economic outlook,
rising inflation, worries over euro zone debt and historically
low interest rates in the United States, analysts said.
"On the basis of everything that is going wrong -- a
possible downgrade in the United States, the situation in Libya
not getting any better, the general feeling about the global
economic situation -- I think gold is going to go higher," said
London-based ANZ Bank analyst Peter Hillyard.
"Gold isn't finished yet by a long shot."
Spot gold <XAU=> was bid at $1,507.19 an ounce at 0853 GMT,
against $1,498.15 late in New York on Wednesday, having earlier
peaked at $1,508.50 an ounce. U.S. gold futures for June
delivery <GCv1> rose $9.40 an ounce to $1,508.30.
Silver <XAG=> was bid at $45.92 an ounce against $45.20.
Gold prices have risen 5.4 percent so far this month and are
on track for a sixth straight week of gains, reflecting strength
across the commodity markets. The Reuters-Jeffries CRB index
<.CRB>, a global benchmark for commodities, posted its biggest
one-day rise in a fortnight on Wednesday.
Many have been helped by losses in the dollar, which slid to
its lowest since early 2008 against a basket of major currencies
on Thursday. []
Brent crude rose above $124 a barrel as U.S. crude stocks
fell unexpectedly last week and the dollar weakened. []
Investors have rushed into risky assets due to strong U.S.
corporate earnings and signs the global economy is chugging
along even as the Federal Reserve stays very cautious about when
it will start to unwind its super-loose policy.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Graphic showing the performance of various assets during the
1980s gold spike and now: http://r.reuters.com/mag29r
Gold:silver ratio: http://r.reuters.com/jyx88r
Inflation-adjusted gold price: http://r.reuters.com/ren88r
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
TIGHTER POLICY EYED
A tightening of U.S. monetary policy and eventual rise in
interest rates are still viewed as the biggest risk factors for
gold, which as a non-interest bearing asset has a lower
opportunity cost when rates are depressed.
But for the moment the precious metal is proving resilient
above $1,500 an ounce.
"We still expect dips to be viewed as buying opportunities,
with gold and silver viewed favourably by investors seeking to
hedge against inflation and debt jitters," said FastMarkets
analyst James Moore.
On the supply side of the market, African Barrick Gold
<ABGL.L> said its output fell 2 percent year-on-year in the
first quarter, but said it was on track to meet its full-year
production target. []
Gold is much less a hostage to traditional supply and demand
fundamentals than commodities that are physically consumed like
oil, but these factors can still have an impact on price.
"An ongoing supply/demand imbalance underpins the market as
good demand for gold jewellery and investment bars and coins in
Asia outweighs mine supply," said Fairfax analyst John Meyer.
Investment demand for silver remained strong, with holdings
of the world's largest silver-backed exchange-traded fund, the
iShares Silver Trust <SLV>, rising by nearly 67 tonnes on
Wednesday to 11,183.69 tonnes. []
Silver has outperformed gold this year, rising 49 percent.
The gold:silver ratio, or the number of silver ounces needed to
buy an ounce of gold, fell to a 28-year low at 32.9 on Thursday.
Among other precious metals, platinum <XPT=> was at
$1,811.24 an ounce against $1,791.15, while palladium <XPD=> was
at $766.38 against $767.97.
Anglo Platinum <AMSJ.J>, the world's number one producer of
the precious metal, kept its full-year production target on
Thursday despite a 5 percent fall in first-quarter output
attributed to safety stoppages. []
(Reporting by Jan Harvey; Editing by Alison Birrane)
