Wed Apr 20, 2011 11:28pm EDT
* Gold's bullish target at $1,518-technicals [ID:nL3E7FL06M] * Coming Up: U.S. Unemployment claims weekly; 1230 GMT
(Updates prices, adds quotes) By Lewa Pardomuan SINGAPORE, April 21 (Reuters) - Bullion powered to a
lifetime high for a fifth consecutive session on Thursday on a
sharply weaker dollar, while lingering tensions in the Arab
World, worries about the euro zone crisis and U.S. fiscal health
offered additional support. Silver roared to its highest in more than three decades as
it tracked a rally in gold, which was also spurred by a threat
of a downgrade to the United States' triple-A credit rating. The
gold-silver ratio -- the number of silver ounces needed to buy
an ounce of gold -- was at its lowest since 1983. Spot gold rose to a record high of $1,508 an ounce
and stood at $1,506.19 an ounce by 0243 GMT, up $8.04 an ounce.
U.S. gold futures GCcv1 also hit a lifetime high at $1,508.9
an ounce. "The U.S. effectively lost its triple A rating in the eyes
of investors that really matter quite some time ago, back when
gold broke $1,000 an ounce," said Fat Prophets commodities
analyst David Lennox. "We don't think America's perceived rating will improve
anytime soon and this is the driving force behind our
expectation of gold's continued price strength. Our next target
for gold is $1,590 an ounce." A bullish target at $1,518 per ounce remains intact for spot
gold as indicated by an inverted head-and-shoulders
pattern and its wave pattern, said Wang Tao, a Reuters market
analyst for commodities and energy technicals.
Spot silver rose as high as $45.93 an ounce, its
strongest since 1980, when the Hunt Brothers of Texas cornered
the silver market. The dollar extended losses and struck its lowest in almost
three years against a basket of currencies as the prospect that
U.S. interest rates would remain at record lows prompted
investors to flock back to higher-yielding currencies.
The physical market in Asia saw limited selling of scrap as
investors waited for more gains. Dealers noted physical buying
from India in the previous session ahead of a main religious
festival, suggesting that consumers had no choice but to buy
bullion at higher prices. India, the world's largest gold consumer, celebrates Akshaya
Tritiya on May 6, when consumers buy gold to invoke prosperity.
"Sentiment is still bullish, we can say. The dollar is
weakening and there is no solution to the situation in Libya.
There's a downgrade in U.S. rating and there's still uncertainty
in the euro zone. It's messy around the world," said Ronald
Leung, director of Lee Cheong Gold Dealers in Hong Kong. "But I think gold is rising too fast. We are waiting for
some kind of correction in the near future. Hopefully next
week." France promised Libyan rebels on Wednesday it would
intensify air strikes on Muammar Gaddafi's forces and send
military liaison officers to help them as fighting raged in
Misrata. Gaddafi's government is circumventing international
sanctions to import gasoline to western Libya by using
intermediaries who transfer the fuel between ships in Tunisia.
[ID:nLDE73J1M3] [ID:nN20168707] U.S. crude futures extended gains in early Asian trade on
Thursday, buoyed by a drop in domestic crude and oil product
inventories last week and a broader commodities buying binge
sparked by a weaker dollar.
Precious metals prices 0243 GMT
Metal Last Change Pct chg YTD pct chg Turnover
Spot Gold 1506.19 8.04 +0.54 6.11
Spot Silver 45.84 0.64 +1.42 48.54
Spot Platinum 1801.99 10.84 +0.61 1.95
Spot Palladium 765.50 13.75 +1.83 -4.25
TOCOM Gold 3989.00 -19.00 -0.47 6.97 32918
TOCOM Platinum 4801.00 -5.00 -0.10 2.24 7148
TOCOM Silver 121.00 2.80 +2.37 49.38 3117
TOCOM Palladium 2040.00 50.00 +2.51 -2.72 260
Euro/Dollar 1.4573
Dollar/Yen 82.17
TOCOM prices in yen per gram. Spot prices in $ per ounce.
(Additional reporting by Rujun Shen in SINGAPORE and Jim Regan
in SYDNEY; Editing by Himani Sarkar)
