* Dollar slides to lowest since late August 2008 vs euro
* Oil prices rise above $74 a barrel, near year-highs
* Silver, platinum, palladium, rhodium hit multi-month highs
(Updates prices, adds comment)
By Jan Harvey
LONDON, Oct 13 (Reuters) - Gold prices hit record highs on
Tuesday and silver, platinum, palladium and rhodium rallied to
multi-month peaks, as the dollar's slide to its lowest since
August 2008 against the euro fuelled buying of precious metals.
Gold later retreated as the dollar clawed back some lost
ground against the euro <EUR=>, but held near $1,060 an ounce as
fears lingered over the outlook for the U.S. currency.
Spot gold <XAU=> touched a peak of $1,068.30 an ounce and
was bid at $1,058.70 at 1509 GMT, against $1,055.25 late in New
York on Monday. It has rallied 12 percent since the beginning of
September as the dollar has weakened.
"The trend in the dollar is lower, and that is going to be
the main focus," said Tom Hartmann, a commodity analyst at
California-based Altavest Worldwide Trading.
"The outlook for the dollar will be predicated on the Fed,
for one, hiking interest rates. But it doesn't look like that is
going to happen any time soon," he added.
The dollar slipped against the euro and fell to a 14-month
low against a basket of currencies <.DXY> as investors refocused
on the outlook for U.S. interest rates. []
Hartmann said it would be the second quarter of next year
before "it is imaginable that any size hike will take place."
Currency and equity traders are awaiting the release of U.S.
corporate results later in the week for clues as to the future
direction of trade.
Oil also rose above $74 a barrel, to near its 2009 high.
Strength in crude often benefits gold, both because it boosts
interest in commodities as an asset class and as the precious
metal can be bought as a hedge against oil-led inflation. []
Gold enthusiasts are also taking heart from a pick-up in
buying of gold jewellery in India, the world's largest bullion
consumer last year, after an extremely sluggish year. []
Demand for gold to back bullion exchange-traded funds is
lacklustre, however. Holdings of the world's largest gold ETF,
the SPDR Gold Trust <GLD>, were steady on Monday. []
U.S. gold futures for December delivery <GCZ9> on the COMEX
division of the New York Mercantile Exchange rose $2.70 to
$1,060.20. They touched a record at $1,069.70 earlier.
TARGETS NEW PEAKS
From a technical perspective, Commerzbank analysts
pinpointed key resistance for gold around $1,066 an ounce. A
failure to breach that level could push it back to its previous
record high above $1,030 and from there to $1,000, they said.
"A weekly close above $1,057 is still needed in order to
confirm that it has been cleared," they said in a report. "Above
here would introduce scope towards $1,191."
Gold's rally lifted the price of other precious metals.
Silver rose above $18.00 an ounce for the first time since July
2008, reaching a peak of $18.01 before edging back to $17.66.
Late in New York on Monday it was at $17.68.
Citigroup said in a research note it expects silver to
average $16.00 an ounce in 2009 and $17.40 next year.
"In our forecasts we believe the gold-silver ratio will
strengthen to around 59 as silver is set to outperform gold," it
said. "Although both share 'safe-haven' properties to some
degree, silver has superior leverage to the industrial cycle."
Platinum <XPT=> hit a 13-month high of $1,361.50 and
palladium <XPD=> a 13-1/2 month peak of $333 an ounce. The
metals were later bid at $1,347 an ounce versus $1,336.50 late
on Monday and $327 versus $325.50 respectively.
Rhodium <RHOD-LON> rose to $1,700 an ounce on Tuesday,
having risen $100 an ounce in the last two sessions. The metal
is being lifted by strength in other metals rather than any
recovery in demand, traders said.
(Additional reporting by Veronica Brown; Editing by James
Jukwey)
