Gold at 3 Week High and Silver Moving Toward 30 Year Peak

Reuters News

Wed Dec 29, 2010 7:44pm EST

SINGAPORE, Dec 30 (Reuters) - Spot gold hovered near its
three-week high and silver geared towards a 30-year peak on
Thursday, buoyed by a slightly weaker dollar, while investors
continued to bet on further price rally in precious metals.


FUNDAMENTALS

* Spot gold edged up 0.2 percent to $1,413.58 an
ounce by 0033 GMT, near a three-week high of $1,413.95 reached
on Wednesday.

* U.S. gold futures were nearly flat at $1,413.5.

* The dollar edged lower against a basket of currencies,
after declining to a seven-week low against the yen and
dropping versus the euro on Wednesday.

* Holdings in SPDR Gold Trust , the world's largest
gold-backed exchange-traded fund, remained unchanged at
1,284.062 tonnes.

* Spot silver edged up 0.2 percent to $30.62 an
ounce, just below the 30-year high of $30.68 hit on Dec 7.

* U.S. silver futures inched down 0.2 percent to
$30.65 an ounce.

MARKET NEWS
* The S&P 500 headed for its best December in nearly two
decades as U.S. stocks advanced in thin trade on Wednesday,
lifted by investor optimism about the economy in 2011.
* U.S. Treasuries debt prices should stay firm into
year-end, following a strong seven-year note auction on
Wednesday, as investors square books ahead of year-end and
prepare for Federal Reserve purchases next week.


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> China raises rediscount rate in tightening
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> US home foreclosures jump in Q3-regulators

> Germany inflation quickens; all eyes on euro zone

> China rare earths export cut raises trade
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PRICES
Precious metals prices at 0033 GMT
Metal Last Change Pct chg YTD pct chg Turnover
Spot Gold 1413.58 2.59 +0.18 29.01
Spot Silver 30.62 0.07 +0.23 81.94
Spot Platinum 1755.49 -1.00 -0.06 19.67
Spot Palladium 788.97 -1.50 -0.19 94.57
TOCOM Gold 3715.00 -14.00 -0.38 13.99 14919
TOCOM Platinum 4669.00 -27.00 -0.57 6.57 3319
TOCOM Silver 80.50 0.00 +0.00 55.71 518
TOCOM Palladium 2088.00 -9.00 -0.43 79.23 216
Euro/Dollar 1.3228
Dollar/Yen 81.42