SINGAPORE: Gold rose to a record high for the fourth straight session on Tuesday, as inflation worries and euro zone sovereign debt woes continue to lure investors to precious metals. Spot silver hit a new 30-year high just below $28, and palladium extended gains to a new nine-year peak of $712.75.
Spot gold rose to an all-time high of $1,412.75 an ounce, before easing to $1,410.45 by 0339 GMT.
“Liquidity is being thrown into the market place, the dollar is being debased as a way the U.S. government can get out of debt obligations, while Asian central banks keep buying dollars and keep their currencies cheap. Hard assets are just going to continue to benefit,” said a Singapore-based trader.
“There is a good arguement for these metals go to up. There is a lot of momentum to buy.”
The target for this round of rally could be $1,475 or even $1,500, in the next three weeks, the trader added.
Holdings in the world’s largest gold-backed exchange traded fund, SPDR Gold Trust , gained 2.43 tonnes to 1,294.196 tonnes, their highest so far this month.
Gold is expected to rise towards $1,430 per ounce, as the uptrend is steady and a wave “5″ is advancing, said Wang Tao, a technical analyst.
The dollar was steady, while the euro traded just below 1.3900 after having fallen for a second straight session, weighed by disappointing German data and heightened concerns about peripheral euro zone debt.
But the dollar has weakened steadily since June against a basket of currencies on concerns about U.S. monetary and fiscal policies.
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