* Spot gold hits record at $1,535.90
* iShares Silver Trust holdings fall by 1.8 percent
* U.S. Q1 GDP figures weaker than expected
(Updates prices; adds comment, data)
By Rebekah Curtis
LONDON, April 28 (Reuters) - Gold hit record highs on
Thursday as the dollar's three-year low against a basket of
major currencies attracted non-U.S. investors, after the United
States signalled it would retain accommodative monetary policy.
Spot gold <XAU=> ascended to a lifetime high of $1,535.90 an
ounce, breaking records for a second straight session. It traded
at $1,534.85 an ounce at 1413, up from $1,526.40 late in New
York on Wednesday.
The dollar index <.DXY>, a measure of the greenback's
strength against a basket of major currencies, dipped to a
three-year low after the U.S. Federal Reserve signalled no rush
to reverse low interest rates in order to support economic
recovery. [] []
The dollar held to losses after data showed U.S. economic
growth slowed more than expected in the first quarter, while
other data showed a rise in weekly U.S. jobless claims.
[] []
"In the last few days the gold price has shown that it's
fully dependent on the U.S. dollar, and the U.S. dollar seems to
be relatively unimpressed by the U.S. data coming out," said
Commerzbank analyst Daniel Briesemann.
U.S. gold futures <GCcv1> also hit an all-time high at
$1,535.10 an ounce and then trimmed gains to $1,532.
The weakening dollar has been a key driver behind gold's
rally in recent weeks, alongside concerns over civil disruption
in the Middle East and North Africa, sovereign debt problems in
the euro zone and rising inflation worldwide. <nTOPMEAST>
"Everything is dollar-related and safe-haven buying," said
MKS Finance head of trading Afshin Nabavi.
"The Fed decision was not really a surprise. Nothing has
changed, but the tone of the statement from Bernanke left the
impression that it is going to be awhile before any rate hikes
will be considered."
The dollar shrugged off data showing U.S. home resale
volumes bounced back in March -- a hopeful sign for recovery in
the housing market, but prices continued to decline.
[]
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Graphic on gold prices and dollar index:
http://graphics.thomsonreuters.com/AS/1/RJS_20112804133314.jpg
Technical view on gold: []
Technical outlook on gold:
http://graphics.thomsonreuters.com/WT1/20112804090902.jpg
FACTBOX-Gold milestones to record high []
Special PDF report on silver's stunning rally:
http://link.reuters.com/xuk29r
India silver recycling to curb imports []
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PHYSICAL BUYING
Physical gold buying was seen active in Asia, while scrap
selling was limited as market participants remained bullish even
after gold struck record highs in nine out of the past ten
sessions, dealers said.
Spot silver <XAG=>, which has rocketed more than 50 percent
so far this year, rose to $49.16 an ounce against $47.76 an
ounce late in New York on Wednesday.
U.S. silver futures <SIcv1> jumped as high as $49.35,
following a climb of as much as 7 percent on Wednesday. They
were later at $49.15.
As silver prices advanced, holdings in the iShares Silver
Trust <SLV>, the world's largest silver-backed exchange-traded
fund, dipped 1.8 percent to 11,053.20 by April 27 from the
previous session.
Gold and silver may both see more upside, but the risk of a
pullback in silver is larger than in gold due to the more
speculative nature of the silver market, traders said.
Platinum was at $1,834.74 an ounce from $1,819.45 and
earlier hit $1,838, its highest since early March. Palladium
<XPD=> was at $772.22 an ounce from $763.45
"The market has been pushed higher by prospects of a weaker
dollar, inflation concerns and all the debt problems," said
Robin Bhar, an analyst at Credit Agricole, adding gold looked
set to touch new record highs soon.
Also, investors awaited U.S. first-quarter GDP preliminary
figures due at 1230 GMT. []
(Additional reporting by Lewa Pardomuanin Singapore and
Amanda Cooper in London; Editing by Alison Birrane and Jane
Baird)
