* Gold hits record for 6th session out of 8
* Strong euro, Asian currencies encourage gold buying
* SPDR Gold Trust <GLD> holdings unchanged Wednesday
By Risa Maeda
TOKYO, Nov 12 (Reuters) - Gold rose above $1,120 per ounce to
hit a record high on Thursday for the second straight day as
investors focused on the precious metal's appeal as a hedge
against a weakening dollar.
Improvements in the economic outlook also lent support to the
precious metal. Gold is often seen as a hedge against energy
price-led inflation.
Spot gold <XAU=> was at $1,119.65 an ounce as of 0232 GMT
after rising to a record $1,121.60, compared with New York's
notional close of $1,117.45..
Bullion has now renewed record highs for six out of the past
eight sessions.
U.S. gold futures for December delivery <GCZ9> traded at
$1,120.30 an ounce, up 0.5 percent. The contract earlier rose to
a fresh record of $1,122.20.
Dick Poon, manager of precious metals at Heraeus in Hong
Kong, said there was some improvement in demand from the
industrial sector. But a key driver for gold's extended gains was
a broad-based fall in the dollar, he said.
"Fund managers are changing their portfolios and so are our
customers, given that the euro and Asian currencies are getting
stronger," Poon said, adding that gold will likely test its next
target of $1,200 by the end of this year.
The Australian dollar hit a 15-month high against the U.S.
dollar on Thursday after a better than expected employment report
led investors to believe a further increase in interest rates was
almost certain next month. []
The dollar index, a gauge of the greenback's performance
against six major currencies, was around 75 after hitting a fresh
15-month low of 74.744 <.DXY> the previous day. []
Risk tolerance was increasing among investors after strong
factory output data from China pointed to a strengthening global
economy, boosting commodities and stock prices and providing more
support to the precious metal. []
"The euro clawed back above $1.500 and oil steadied near $80
(a barrel). Japanese stocks are extending their gains. Everything
looks good for gold," said Shuji Sugata, a manager at Mitsubishi
Corp Futures' research team.
On Wednesday, Vietnam's central bank said it will allow
imports of gold -- banned since May last year -- after the sharp
rise in bullion prices in recent days, potentially opening up a
new source of demand. []
But a lack of foreign currency in Vietnam means even if there
was demand for the precious metal it would not be enough to have
an impact on the market as a whole, said Kaname Gokon, deputy
general manager at Japanese commodity brokerage Okato Shoji Co.
Separately, gold has been underpinned by hopes for more
central bank buying after news last week that the International
Monetary Fund had sold 200 tonnes of bullion to India's central
bank.
On the supply side, Barrick Gold Corp <ABX.TO>, the world's
biggest gold producer, told Reuters it sees the potential for
record margins in the fourth quarter as gold prices hit new peaks
and costs are stable or lower. []
But interest in gold exchange-traded funds remained soft,
with holdings of the largest bullion-backed ETF, New York's SPDR
Gold Trust <GLD>, at 1,114.443 tonnes on Wednesday, unchanged
since Nov. 9. []
Precious metals prices at 0235 GMT
Metal Last Change Pct chg YTD pct chg Turnover
Spot Gold 1119.60 2.15 +0.19 27.21
Spot Silver 17.66 0.09 +0.51 56.01
Spot Platinum 1375.50 7.50 +0.55 47.59
Spot Palladium 346.00 4.50 +1.32 87.53
TOCOM Gold 3244.00 36.00 +1.12 26.08 57094
TOCOM Platinum 3988.00 63.00 +1.61 50.38 8778
TOCOM Silver 512.10 10.40 +2.07 60.38 365
TOCOM Palladium 1000.00 37.00 +3.84 81.82 628
Euro/Dollar 1.4995
Dollar/Yen 89.75
TOCOM prices in yen per gram, except TOCOM silver which is
priced in yen per 10 grams. Spot prices in $ per ounce.
(Editing by Michael Watson)
