* Dollar index slips ahead of U.S. inflation data
* Non-U.S. gold also up as cenbank purchases cheer market
* Silver, platinum also reach highest in over a year
(Updates throughout, changes dateline from TOKYO)
By Jan Harvey
LONDON, Nov 18 (Reuters) - Gold hit a fresh record high near
$1,150 an ounce on Wednesday, boosting precious metals across
the board, as a dip in the dollar index <.DXY> added to momentum
buying as prices broke through key technical resistance levels.
In non-U.S. dollar terms, gold also climbed, hitting
multi-month highs when priced in the euro, sterling and the
Australian dollar.
Spot gold <XAU=> hit a high of $1,147.45 and was at
$1,146.05 an ounce at 0948 GMT, against $1,141.50 late in New
York on Tuesday.
U.S. gold futures for December delivery <GCZ9> on the COMEX
division of the New York Mercantile Exchange also hit a record
$1,148.10 and were later up $7.10 at $1,146.40 an ounce.
"Yesterday the market took a breather and tested below
$1,130 very quickly, (but) a few physical related bargain
hunters were lined up to grab the dip," said Afshin Nabavi, head
of trading at MKS Finance in Geneva.
The market is being underpinned by fresh interest in gold
from the official sector, he said, after a recent major bullion
acquisition from India and smaller buys by the central banks of
Mauritius and Sri Lanka. [] []
The acquisitions underlined gold's appeal as a portfolio
diversifier, especially in an environment where further dollar
weakness was expected, analysts said.
The dollar eased back on Wednesday from its biggest rise in
three weeks in the previous session, as traders awaited U.S.
inflation data due at 1330 GMT. []
The dollar index <.DXY>, which measures the U.S. currency's
performance against a basket of six others, was down 0.37
percent, while the euro/dollar <EUR=> exchange rate firmed.
Other commodities also climbed, with oil rising back towards
$80 a barrel and copper to 13-1/3 month highs near $7,000 a
tonne. Both are being lifted by the weak dollar. [] []
INFLATION EYED
Gold traders are awaiting key U.S. consumer price index
numbers later in the day for clues as to the next direction of
trade, both due to its effect on the currency markets and on
bullion itself, which is often seen as an inflation hedge.
"Low inflation pressures are traditionally a negative for
gold prices," said HSBC analyst James Steel in a note.
"If, however, weak inflation data are seen as allowing the
Fed to continue to pursue easy monetary policies, this may be
seen as supportive of gold."
Gold rose in currencies other than the U.S. currencies,
reaching its highest since late February in euro terms
<XAUEUR=R>, since early March in sterling terms <XAUGBP=R>, and
since early May when priced in the Australian dollar.
The physical market was quiet, however, with India's gold
demand abating as prices struck fresh record highs after offtake
picked up slightly in the previous two sessions, while scrap
flow eased on hopes for higher prices. []
Gold's strength also lifted other precious metals, with
silver hitting a 16-month high at $18.66 an ounce and platinum
reaching a peak of $1,462, its highest since September 2008.
Later silver <XAG=> was bid at $18.63 an ounce against
$18.40, while platinum <XPT=> was at $1,455.50 an ounce against
$1,453 and palladium <XPD=> was at $374 against $370.
"Given the bullish tone in the rest of the complex and
increasing investment demand, both metals are likely to test
higher in the coming sessions with resistance above pegged at
$1,490 and $400," said TheBullionDesk.com analyst James Moore.
(Editing by James Jukwey)
