US gold closes near 14-month peak as dollar slides

NEW YORK, Sept 16 (Reuters) - U.S. gold futures soared on
Wednesday to highs dating back to July 2008, ending just off
those levels when the dollar slid to fresh one-year lows
against the euro and as investors sought the metal as a buffer
against possible inflation down the road, traders said.

For the latest detailed report, click on [GOL/].

GOLD

* December gold GCZ9 finished $13.90 higher, a 1.38
percent gain, at $1,020.20 an ounce on the COMEX division of
the New York Mercantile Exchange.

* The range reached a high at $1,023.30 an ounce, a level
last seen in late July 2008, from a low at $1,007.90 an ounce.

* Gold rallied to levels unseen in 14-months primarily when
the dollar was sold heavily against the euro - traders.

* The dollar slid to a one-year low against the euro as
optimism about global economic recovery eroded demand for the
greenback as a safe haven. [USD/]

* The greater inflation potential down the road implied by
the several stronger-than-forecast U.S. economic and inflation
readings over the last two days pushed gold higher - analysts.

* The Labor Department said its Consumer Price Index rose
0.4 percent in August after a flat reading in July, above
market expectations for a 0.3 percent gain. Story:
[ID:nN15416331] Table: [ID:nOAT002283]

* U.S. industrial production rose for a second consecutive
month in August, showing another piece of evidence that the
economic recovery was under way. Story: [ID:nN16118422] Table:
[ID:nWEQ001390]

* "This is a shot in the arm for recovery. This is what
we're looking for. We're looking for solid evidence -- not just
stimulus -- the economy is recovering and this is really the
first piece of evidence that needs to fall into place," said
Jack Ablin, chief investment officer, Harris Private Bank.

* On Tuesday, sales at U.S. retailers rose at their fastest
pace in 3-1/2 years in August. [ID:nN14478930]

* U.S. producer prices rose more than twice as much as
expected in August. [ID:nN15543702]

* As economic activity picks up, fears of a pickup in
inflation at a time when the government's latitude to tighten
is hampered has some investors seeking gold - analysts.

* Technicians are eyeing the $1,033.90 per ounce prior
record high on gold's continuation chart - analysts.

* Spot gold XAU= raced up to $1,017.65 an ounce in late
New York dealings from $1,006.75 an ounce at Tuesday's finish.

* London afternoon gold XAUFIX= was fixed at higher at
$1,015.75 an ounce.

* At the Denver Gold Forum, Gold Fields (GFIJ.J) chief
executive officer told Reuters he sees gold hitting $1,600 an
ounce if crude oil goes to $100 a barrel in the next six to 18
months. [ID:nN16143914]

SILVER

* December silver SIZ9 surged 43 cents, or 2.53 percent,
to end at $17.43 an ounce, gaining as a both a financial and
industrial metal on improved economic prospects.

* Silver and platinum group metals are less heavily traded
than gold and therefore usually have bigger percentage moves
when action becomes fast paced - analysts.

* Range extended to $17.58, a 13-1/2 month peak, from a low
of 17.0350 an ounce.

* Spot silver XAG= charged up to $17.36 an ounce from $17
an ounce in late Tuesday dealings.

* London silver XAGFIX= was fixed higher at $17.29 an
ounce.

PLATINUM

* October platinum PLV9 surged $29.80, or 2.26 percent,
to $1,350.10 an ounce.

* Spot platinum XPT= firmed with gold, jumping to
$1,344.0 an ounce in late business from $1,324.50 an ounce on
Tuesday.

* Platinum was being bought as a financial and industrial
investment, giving it an extra boost - analysts.

PALLADIUM

* December palladium PAZ9 rose $4.25 to close at $300.50
an ounce.

* Spot palladium XPD= was quoted at $294.50 an ounce, up
from $291.50 at Tuesday's finish.
Prices at 2:46 p.m. EDT (1846 GMT)

Last Change Pct 2008 YTD

Chg Close % Chg
US gold GCZ9 1019.10 12.80 1.3 884.30 15.2
US silver SIZ9 17.385 0.385 2.3 11.295 53.9
US platinum PLV9 1348.00 27.70 2.1 941.50 43.2
US palladium PAZ9 301.45 5.20 1.8 188.70 59.8
Gold XAU= 1017.15 11.25 1.1 878.200 15.8
Silver XAG= 17.33 0.36 2.1 11.30 53.4
Platinum XPT= 1337.50 14.50 1.1 924.50 44.7
Palladium XPD= 294.50 3.00 1.0 184.50 59.6
Gold Fix XAUFIX= 1015.75 19.75 2.0 836.50 21.4
Silver Fix XAGFIX= 17.290 0.770 4.7 14.760 17.1
Platinum Fix XPTFIX= 1339.00 0.00 0.0 1529.00 -12.4
Palladium Fix XPDFIX= 298.00 0.00 0.0 365.00 -18.4
(Reporting by Carole Vaporean; Editing by Lisa Shumaker)