* Euro zone debt back in the fray
* Eyes on G20 summit
By Pratima Desai
LONDON, Nov 9 (Reuters) - Gold surged to a record high for
the fourth day running on Tuesday, fuelled by renewed concern
over high sovereign debt in euro zone countries such as Ireland
and Greece and inflationary pressures.
Spot gold <XAU=> hit $1,422.30 a troy ounce. The precious
metal was bid at $1,418.40 an ounce at 1124 GMT from $1,409.09
late in New York on Monday.
Silver <XAG=> touched $28.46 an ounce, the highest since
March 1980, and palladium <XPD=> saw $728.22 an ounce, its
highest since April 2001.
"We have a combination: inflation fears, currency market
uncertainty, fears about the financial strength of some
countries," said Alexander Zumpfe of Heraeus Metals.
Zumpfe said remarks by World Bank President Robert Zoellick
that leading economies should consider readopting a modified
gold standard, had also helped reignite interest in the precious
metal. []
Worries about price pressures were reinforced last week by
the U.S. Federal Rederal which annnounced further monetary
policy easing to help boost economic growth in the world's
largest economy, the United States.
"Inflation concerns and euro zone debt worries have helped
accentuate the surge this week initiated by the weakness in the
dollar," said investment bank Fairfax in a note.
News that the Fed would buy back $600 billion of U.S.
government bonds initially weakened the dollar and propelled
commodity prices higher, particularly gold, which has gained
nearly 30 percent this year so far.
G20 CONCERNS
Also on the radar is this week's G20 summit. Officials from
Germany, Brazil, China and South Africa are among those
expressing concern that the Fed's money printing could weaken
the dollar and drive up commodity prices. []
If the G20 fails to defuse global tensions, it may heighten
investor concerns that policymakers are drifting further apart,
leaving the world economy vulnerable.
"There is a lot of uncertainty ahead of the G20 meeting. If
there are no surprises we may see a correction afterwards," said
David Wilson, analyst at Societe Generale.
"Gold is using any excuse to go higher."
Traders think the target this rally is $1,475 an ounce.
"Beyond that $1,500 is only a short ride," one trader said,
adding high seasonal physical demand was another factor behind
the rise in precious metal prices.
Holdings in the world's largest gold-backed exchange traded
fund, SPDR Gold Trust <GLD>, gained 2.43 tonnes to 1,294.196
tonnes, their highest so far this month. []
Spot silver was bid at $28.33 an ounce from $27.69 late in
New York on Monday and palladium was at $726.72 from $705.22.
Spot platinum <XPT=> was at $1,783.50 from $1,771.50 on
Monday. Earlier the precious metal used in autocatalysts hit
$1,785.50 an ounce, within reach of last week's $1,788.74 -- the
highest since July 2008.
(Reporting by Pratima Desai;editing by William Hardy)
