* Dollar slides to lowest since August 2008 vs euro
* Oil prices rise above $74 a barrel, near year highs
* Silver, platinum group metals hit multi-month highs
(Recasts, updates comments, closing prices, market activity, adds
NEW YORK byline/dateline)
By Frank Tang and Jan Harvey
NEW YORK/LONDON, Oct 13 (Reuters) - Gold prices hit a record
high in choppy trade on Tuesday, and silver, platinum, palladium
and rhodium rallied to multi-month peaks, as the dollar's slide to
its lowest level since August 2008 against the euro fueled buying
of precious metals.
Gold later retreated but stayed higher as the dollar clawed
back some lost ground against the euro <EUR=>, but it held near
$1,060 an ounce as fears lingered over the outlook for the U.S.
currency.
Spot gold <XAU=> scaled an all-time high at $1,068.30 an
ounce, and was at $1,063.80 an ounce at 2:01 p.m. EDT (1801 GMT),
against $1,055.25 late in New York on Monday. It has rallied 12
percent since the beginning of September on a steadily falling
dollar.
"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 (U.S. Federal Reserve), for
one, hiking interest rates. But it doesn't look like that is going
to happen any time soon."
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 (interest) hike will take
place."
Most-active December gold futures <GCZ9> settled up $7.50 at
$1,065 an ounce on the COMEX division of the New York Mercantile
Exchange.
Currency and equity traders were awaiting the release of
earnings results of key U.S. companies later in the week for clues
to the future direction of trade.
Oil also rose above $74 a barrel, near its 2009 high. Strength
in crude often benefits gold, because it boosts interest in
commodities as an asset class and the precious metal can be bought
as a hedge against oil-led inflation.
Gold bulls were also taking heart from a pick-up in buying of
gold jewelry in India, the world's largest bullion consumer last
year, after an extremely sluggish year. []
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.
Gold's rally also lifted the price of other precious metals.
Silver rose above $18 an ounce for the first time since July
2008, reaching a peak of $18.01. It was last at $17.70, versus a
late Monday New York quote of $17.68.
Citigroup said in a research note it expects silver to average
$16.00 an ounce in 2009 and $17.40 next year.
Platinum <XPT=> hit a 13-month high of $1,361.50, and
palladium <XPD=> rose to a 13-1/2-month peak of $333 an ounce.
Platinum was later at $1,353 an ounce, versus $1,336.50 late on
Monday, and palladium was at $325.50, versus $325.50.
Rhodium <RHOD-LON>, a platinum group metal, rose to $1,700 an
ounce on Tuesday, having risen $100 an ounce in the past two
sessions.
Close Change Pct 2008 YTD
Chg Close % Chg
US gold <GCZ9> 1065.00 7.5 0.7 884.3 20.4
US silver <SIZ9> 17.840 0.020 0.1 11.295 57.9
US platinum <PLF0> 1360.70 13.40 1.0 941.50 44.5
US palladium <PAZ9> 329.80 0.00 0.0 188.70 74.8
Prices at 2:01 p.m. EDT (1801 GMT)
Gold <XAU=> 1063.90 8.65 0.8 878.20 21.1
Silver <XAG=> 17.82 0.14 0.8 11.30 57.7
Platinum <XPT=> 1354.00 17.50 1.3 924.50 46.5
Palladium <XPD=> 326.00 0.500 0.2 184.50 76.7
Gold Fix <XAUFIX=> 1057.50 -7.00 -0.7 836.50 26.4
Silver Fix <XAGFIX=> 17.99 10.00 0.6 14.76 21.9
Platinum Fix <XPTFIX=> 1356.00 1.00 0.1 1529 -11.3
Palladium Fix<XPDFIX=> 331.00 4.00 1.2 365.0 -9.3
(Additional reporting by Veronica Brown in London; Editing by
Walter Bagley)
