* Gold rallies in late sessions as dollar rally weakens
* CBGA signatories sell 1.5 tonnes in 1st year of pact
* SPDR gold, iShares silver ETFs report inflows
(Recasts, updates prices, market actvity to close; adds second
byline, dateline, previously LONDON)
By Frank Tang and Jan Harvey
NEW YORK/LONDON, Nov 19 (Reuters) - Gold prices settled
slightly higher on Thursday, rebounding from early losses as
strong investment fund demand more than offset selling prompted
by a higher dollar.
James Steel, chief commodities analyst at HSBC, said
investors bought gold late in the session after a dollar rallly
lost steam.
"Gold was able to rally despite the fact that the stock
market was weak and commodities were lower. The underlying
sentiment is still very good," said James Steel, chief
commodities analyst at HSBC.
Also boosting gold was a report that billionaire hedge fund
manager John Paulson was launching a new gold fund using $250
million of his own personal investment.
Spot gold <XAU=> was at $1,145 an ounce at 3:47 p.m. EST
(2047 GMT), compared with $1,144.70 late in the previous
session in New York on Wednesday, when it hit a record
$1,152.75 an ounce.
U.S. COMEX December gold <GCZ9> settled up 70 cents at
$1,141.90 an ounce on the NYMEX.
The metal remains firmly underpinned by positive sentiment
after a number of central bank bullion purchases earlier in the
month, traders say, including India's acquisition of 200 tonnes
of gold from the IMF.
"The expectation is that there will be more of that to
come," said Simon Weeks, director of precious metals at the
Bank of Nova Scotia.
"From a sentiment point of view, that indicates that
central banks are looking for ways of addressing reserve
imbalances. As such, that is a positive for gold."
The World Gold Council said on Thursday only a "negligible"
1.5 tonnes of gold had been sold by signatories of the Central
Bank Gold Agreement in the year starting Sept. 27.
[]
Prices also got a boost from elevated levels of call
options, or rights to buy, for U.S. December gold futures,
traders said.
The dollar and yen rose as declines in stock and commodity
markets revived the safe-haven appeal of the U.S. and Japanese
currencies. [] World stocks as measured by MSCI
<.MIWD00000PUS> dipped 1.5 percent, while Wall Street broadly
ended more than 1 percent lower. []
Oil prices slid more than 2 percent and industrial metals
declined. Gold often tracks crude, viewed as a hedge against
oil-led inflation. [] []
MOMENTUM INTACT
Analysts say gold has gained momentum during a rally that
has lifted prices 9 percent since the start of November.
The world's largest gold-backed exchange-traded fund, SPDR
Gold Trust <GLD>, said its holdings rose 3.66 tonnes or 0.3
percent on Wednesday to 1,117.493 tonnes, their first rise
since Nov. 9. []
Silver <XAG=> edged down to $18.53 an ounce against $18.54.
The world's largest silver ETF, the iShares Silver Trust <SLV>,
said its holdings rose to a record 9,021.31 tonnes on
Wednesday.
Platinum <XPT=> was at $1,441 an ounce against $1,439.50,
while palladium <XPD=> was at $365.50 against $368.50. Rhodium
<RHOD-LON> hit a 13-month high of $2,550 an ounce.
Close Change Pct 2008 YTD
Chg Close % Chg
US gold <GCZ9> 1141.90 0.7 0.1 884.3 29.1
US silver <SIZ9> 18.455 0.040 0.2 11.295 63.4
US platinum <PLF0> 1443.90 -8.10 -0.6 941.50 53.4
US palladium <PAZ9> 369.90 -4.25 -1.1 188.70 96.0
Prices at 3:02 p.m. EST (2002 GMT)
Gold <XAU=> 1143.60 -1.10 -0.1 878.20 30.2
Silver <XAG=> 18.51 -0.03 -0.2 11.30 63.8
Platinum <XPT=> 1441.00 1.50 0.1 924.50 55.9
Palladium <XPD=> 365.50 -3.000 -0.8 184.50 98.1
Gold Fix <XAUFIX=> 1135.50 -0.50 0.0 836.50 35.7
Silver Fix <XAGFIX=> 18.20 -54.00 -2.9 14.76 23.3
Platinum Fix <XPTFIX=> 1435.00 5.00 0.3 1529 -6.1
Palladium Fix<XPDFIX=> 370.00 4.00 1.1 365.0 1.4
(Reporting by Frank Tang and Jan Harvey; Editing by David
Gregorio)
