* Gold hits new highs in euro, sterling, rupee and others
* SPDR Gold Trust holdings hit new record of 1,024.09 tonnes
* Impala Platinum cuts output targets for 2009 and beyond
(Updates prices, adds detail)
By Jan Harvey
LONDON, Feb 19 (Reuters) - Gold eased from the seven-month
high it hit earlier on Thursday as investors took profits, but
the metal is expected to push towards highs above $1,000 an
ounce on rising interest in the metal as a haven from risk.
Spot gold <XAU=> eased to $978.45/980.05 an ounce at 1230
GMT from $984.50 late in New York on Wednesday. Earlier it
touched a peak of $985.95 an ounce, its strongest since July 15.
"I still think we will test $1,000, but the market is
extremely long now and we have some profit-taking," Deutsche
Bank trader Michael Blumenroth said. "People are scared, so
there is still a flight to safe havens at the moment."
In sterling <XAUGBP=R> and euro <XAUEUR=R> terms, gold hit
record highs of 692.73 pounds and 785.83 euro. In the Canadian
dollar it reached an all-time peak of C$1,242.31, and in
Australian dollars <XAUAUD=R> a record A$1,546.29.
Indian rupee-priced gold futures also hit a peak, denting
local bullion demand. []
Gold climbed nearly 5 percent this week to its Thursday
peak, as fear over the outlook for the financial system and
rising inflation in the longer term prompted investors to buy it
as a safe store of value.
However, profit taking and a recovery of other assets such
as equities and the euro in early trade pushed the precious
metal down as much as 1.7 percent.
"If we see signs the stock markets are recovering, people
will come back to stocks," Blumenroth said. "If money comes back
to the stock market, it will come out of gold."
But investment demand for apparently safer assets is still
supporting bullion.
Canada-based brokerage Canaccord Adams said it had raised
its peak gold price scenario to $1,100 an ounce from $950,
citing strong demand for the metal as a haven from risk and
inflation prospects.
ETF BUYING STRONG
Buying of gold-backed exchange-traded funds in particular is
very strong. Holdings of the world's largest gold-backed ETF,
the SPDR Gold Trust <GLD>, rose 1.5 percent to a record 1,024.09
tonnes as of Wednesday. []
"Over the past month, inflows into the ETF have more than
equalled mine supply...and are close to matching our estimates
of total demand for gold," UBS strategist John Reade said in a
research note.
"This one category of buying is almost responsible for the
entire gold market, with other buying via futures, OTC, bars and
coins making up the balance."
The dollar dipped versus the euro as a rise in European
share prices reflected easing risk aversion, and as eastern
European currencies rallied. []
While a weaker dollar typically benefits gold, both assets
are for the moment responding to risk aversion, as they are seen
as key risk havens. Gold's other main external driver, crude
oil, climbed but also exerted little influence over the metal.
In supply news, the world's second-largest gold producer
Newmont Mining <NEM.N> sees equity gold sales at 5.2-5.5 million
ounces in 2009, and reported adjusted earnings per share of 26
cents in the fourth quarter. []
Among other precious metals, spot silver <XAG=> dipped in
line with gold to $14.26/14.32 an ounce from $14.32. Earlier it
peaked at $14.38, its strongest level since mid-August.
Spot platinum <XPT=> slipped to $1,072/1,077 an ounce from
$1,097.50, while spot palladium <XPD=> slid to $213/218 an ounce
from $217.
The chief executive of the world's number two platinum
producer Impala Platinum Holdings <IMPJ.J> said the company was
revising its production strategy in response to falling demand.
[]
He said Impala's output target for 2009 had been cut, and
he sees lower metal output in the next 18-24 months.
Both platinum and palladium prices have tumbled in the last
year as demand from carmakers, major users of the metals,
slumped.
"Uncertainty in the global automotive industry could mean
downside for platinum in the weeks to come," Standard Bank
analyst Walter de Wet said.
(Editing by Sue Thomas)
