(Corrects gold value in first paragraph)
* Gold hits new high on talk India may buy more gold
* Holdings in iShares Silver Trust <SLV> hit record high
* SPDR Gold holdings inch up 0.08 pct
By Miho Yoshikawa
TOKYO, Nov 25 (Reuters) - Gold struck a record high for a
second time this week, rising above $1,177 an ounce on
Wednesday, as the dollar slipped and a newspaper reported that
India was "open to buying" more gold from the International
Monetary Fund.
Gold has jumped nearly 13 percent since the beginning of
this month as investors poured money into the metal after
India's central bank announced it had bought 200 tonnes of
bullion from the IMF. Russia, Sri Lanka and Mauritius have
followed suit.
The market gained further on Wednesday after Indian
newspaper the Financial Chronicle said the Reserve Bank of
India (RBI) could buy the IMF's remaining 201.3 tonnes of gold,
now the subject of negotiations.
The newspaper quoted an Indian government official as
saying: "(The) RBI is an independent body and the government
does not interfere in its affairs. It will get the gold if its
bid is successful and at the price it has offered."
India's central bank governor, Duvvuri Subbarao, declined
to comment on whether the bank would buy more gold from
overseas, however. []
"That India report has certainly helped to push the
momentum in the market today," said Darren Heathcote, head of
trading at Investec Australia.
Spot gold <XAU=> rose to an all-time high of $1,177.90 an
ounce after the India report. Prices later eased to $1,176.50
as of 0414 GMT, still up 0.5 percent from the notional close in
New York. Gold topped the previous high of $1,173.50 hit on
Monday.
U.S. gold futures for December delivery <GCZ9> also rose to
a record high of $1,177.40.
"If India is potentially buying more, then that doesn't
particularly surprise me," said David Moore, commodities
strategist at Commonwealth Bank of Australia in Sydney.
"At the moment, as we speak, the U.S. dollar is going
through one of its soft patches again," he said.
The U.S. dollar held near a six-week low against the yen on
Wednesday, while the Australian dollar gained on the greenback
and the Japanese currency after an upbeat speech from a central
banker and a rise in construction work. []
Traders said the relatively thin trading volume ahead of
Thursday's U.S. Thanksgiving holiday had served to exaggerate
price moves.
"We've seen at times relatively large movements on
relatively small volume because the market is literally very
thin," Heathcote said.
But market sentiment remained bullish.
"The same forces are at play...underpinning it (gold) at
the moment, the weaker dollar is a very big one," he said.
The previous record high was the $1,174.00 marked on
Monday.
The purchase was part of a planned sale of 403.3 tonnes by
the IMF.
Kazuhiko Saito, chief analyst at Fujitomi Co Ltd in Tokyo,
said investors continued to believe that other central banks
might buy gold.
"Gold is being bought even when the euro falls against the
dollar, and what we are seeing is an active flow of funds,"
Saito said.
He noted that other markets were quiet, with gold
attracting most of the activity.
Japan's Nikkei stock average was flat on Wednesday after
hitting a four-month intraday low, with tech shares and banks
sold amid persistent concerns about equity funding, a rising
yen and uncertainty about government economic policy. []
Traders say investors are also attracted to gold, often
seen as a hedge against inflation, which erodes the value of
paper assets.
Money has also flowed into other precious metals investment
instruments.
The world's largest silver-backed exchange-traded fund, the
iShares Silver Trust <SLV>, said its silver holdings rose
135.98 tonnes or 1.5 percent from the previous business day to
a record 9,252.02 tonnes as of Nov. 24. []
The world's largest gold-backed exchange-traded fund, SPDR
Gold Trust <GLD>, said its holdings stood at 1,122.371 tonnes
as of Nov. 24, up 0.914 tonnes or 0.08 percent from the
previous business day. []
The U.S. crude oil price <CLc1> hovered around $76 per
barrel on Wednesday, following a fall of 2 percent in the
previous session after data showed the U.S. economy grew at a
slower-than-expected pace last quarter. []
PRICES
Precious metals prices at 0410 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 1177.00 8.10 +0.69 33.73
Spot Silver 18.70 0.21 +1.14 65.19
Spot Platinum 1452.00 7.50 +0.52 55.79
Spot Palladium 369.50 3.15 +0.86 100.27
TOCOM Gold 3352.00 13.00 +0.39 30.28
50932
TOCOM Platinum 4124.00 -17.00 -0.41 55.51
12551
TOCOM Silver 532.20 0.50 +0.09 66.68
396
TOCOM Palladium 1049.00 -14.00 -1.32 90.73
140
Euro/Dollar 1.4987
Dollar/Yen 88.26
TOCOM prices in yen per gram, except TOCOM silver which is
priced in yen per 10 grams. Spot prices in $ per ounce.
(Reporting by Miho Yoshikawa; Editing by Sambit Mohanty)
((miho.yoshikawa@thomsonreuters.com; +81-3 6441 1854; Reuters
Messaging: miho.yoshikawa.reuters.com@reuter s.net))
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