US gold soars to 14-month high as dollar tumbles

NEW YORK, Sept 16 (Reuters) - U.S. gold futures soared on
Wednesday to highs dating back to July 2008, pushed higher by a
sinking dollar against the euro and investor demand after
recently robust economic readings suggested possible inflation
down the road, traders said.

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

GOLD

* December gold GCZ9 firmed $11.20 to $1,017.50 an ounce
on the COMEX division of the New York Mercantile Exchange by
10:03 EDT (1403 GMT).

* 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 continued the rally launched late on Tuesday when
the dollar turned lower. The U.S. currency hit a year low on
Wednesday, lifting gold to a 14-month peak - traders.

* The dollar slumped to a one-year low against a currency
basket as risk appetite increased and a report showing sharply
higher net capital outflows from the U.S. in July rattled
investors. [USD/]

* The euro rallied to a nine-month high, a move analysts
said was an extension of ongoing negative sentiment toward the
U.S. currency, whose attractiveness as a safe-haven has been
diminished by the view that the global economy is improving.

* Several stronger-than-forecast U.S. economic and
inflation readings over the last two days boosted gold because
of their implications for an increase in inflation - 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.

* U.S. industrial production rose for a second consecutive
month in August, 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." - Jack
Ablin, chief investment officer, Harris Private Bank, Chicago.

* 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 running to 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 $1,016.45 an ounce from
$1,006.75 an ounce in late Tuesday trade in New York.

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

SILVER

* December silver SIZ9 surged 39.0 cents, or 2.29
percent, to $17.39 an ounce, gaining as a financial and
industrial metal on an improved economic outlook.

* Range extended to $17.4150, a 13-month peak, from a low
of 17.0350 an ounce.

* Spot silver XAG= up to $17.33 an ounce from $17.00 in
late Tuesday dealings.

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

PLATINUM

* October platinum PLV9 added $18.60 to $1,338.90 an
ounce.

* Spot platinum XPT= firmed with gold, jumping to
$1,331.0 an ounce from $1,324.50 an ounce late Monday.

PALLADIUM

* December palladium PAZ9 rose $3.70 to $299.95 an
ounce.

* Spot palladium XPD= was quoted at $295 an ounce, up
from $291.50 at Tuesday's finish.
Prices at 11:08 a.m. EDT (1508 GMT)

Last Change Pct 2008 YTD

Chg Close % Chg
US gold GCZ9 1017.80 11.50 1.1 884.30 15.1
US silver SIZ9 17.365 0.365 2.2 11.295 53.7
US platinum PLV9 1340.00 19.70 1.5 941.50 42.3
US palladium PAZ9 299.95 3.70 1.3 188.70 59.0
Gold XAU= 1015.85 9.95 1.0 878.200 15.7
Silver XAG= 17.31 0.34 2.0 11.30 53.2
Platinum XPT= 1333.50 10.50 0.8 924.50 44.2
Palladium XPD= 295.00 3.50 1.2 184.50 59.9
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 na na 1529.00 -14.8
Palladium Fix XPDFIX= 298.00 na na 365.00 -20.7
(Reporting by Carole Vaporean; editing by Jim Marshall)