(Updates prices, adds closing in Tokyo)
By Lewa Pardomuan
SINGAPORE, Feb 27 (Reuters) - Gold roared above $960 an
ounce on Wednesday to its highest level ever, with investors
pouring money into the metal as oil hit another record above
$101 a barrel and the U.S. dollar tumbled against other
currencies.
Spot gold <XAU=> rose as high as $963.40 an ounce, with
buying particularly from investors and speculators in Japan. It
was up from $946.60/947.40 late in New York on Tuesday and has
gained as much as 16 percent this year.
Silver rallied to its loftiest level since November 1980 on
investor buying as it was still cheaper than other precious
metals. Palladium jumped to its best level in more than six
years while platinum hovered below last week's record.
"Investors are still very concerned about the fluctuations
and troubles in other markets," said Darren Heathcote of
Investec Australia in Sydney.
"Let's just say $970 is not inconceivable. As I guess
$1,000 is not inconceivable. There doesn't seem to be much
reason to sell gold," he said.
The dollar hit a record low beyond $1.50 to the euro after
surprisingly weak U.S. data and comments by the Federal
Reserve's No. 2 official reinforced views that the central bank
will keep cutting interest rates. []
"The stock markets and oil are going up and that attracts
buying interest. Going ahead, we are talking about $970," said
Ronald Leung, director of Lee Cheong Gold Dealers in Hong Kong,
who pegged support at $930 an ounce.
Gold shrugged off any worries about sales by the
International Monetary Fund of some of its bullion reserves,
which Leung said would be done in stages and in limited
quantity and were unlikely to cause a sharp drop in gold
prices.
The United States Treasury has reversed its opposition to
the sale of a limited portion of the IMF's more than 3,000
tonnes of gold stocks, the world's third-largest holding, and
was confident Congress would support the move.
U.S. gold futures also hit record highs. Gold for April
delivery <GCJ8>, the most active contract, on the COMEX
division of the New York Mercantile Exchange hit a high of
$965.50 ounce, up from Tuesday's settlement of $948.90 an
ounce.
In the physical sector, jewellers cashed in on gold's rise
but there was also buying from speculators, who believed there
was still room for gains.
"It's basically two-way trading. There was selling from
jewellers in Indonesia but the volume is low," said a dealer in
Singapore, referring to Southeast Asia's main consumer.
The new benchmark gold contract on Tokyo Commodity Exchange
<0#JAU:>, February 2009, rose as high as 3,322 yen per gram,
its highest level since September 1983, before ending at 3,319
yen. The contract started trading on Wednesday and opened at
3,302 yen.
Silver <XAG=> jumped as high as $19.43 an ounce, its best
level in 27 years. The metal was last quoted at $18.65/18.70
late in New York on Tuesday.
Spot platinum <XPT=> rose to $2,165/2,172 an ounce from
$2,130/2,140 an ounce but was off last week's record high of
$2,192 an ounce.
Palladium <XPD=> rose as high as $557 an ounce, its best
level in more than six years, up from $523/528 late in New
York.
(Editing by Ben Tan)
