* Premiums in Singapore, HK steady despite record high
* Gold may reach $1,305 an ounce -technicals
* Coming up: U.S. FHFA Home price for July; 1400 GMT
(Updates prices; adds Tokyo premium)
SINGAPORE, Sept 22 (Reuters) - Gold surged to a new record
on Wednesday, as sentiment remained strong with the U.S.
Federal Reserve moving closer to providing more support to the
The Fed on Tuesday laid the groundwork for further stimulus
measures and expressed concerns about low inflation. However,
it made no policy shift at the end of a one-day meet.
Spot gold hit a new record of $1,290.85 an ounce, before
easing to $1,287.95 an ounce by 0457 GMT. U.S. gold futures
stood at $1,289.6 an ounce, after having touched a
record high of $1,292.5.
The Fed's move closer to pump more money into the economy
makes investors want to hold on to bullion as a hedge against
future inflation, said Ronald Leung, a physical dealer at Lee
Cheong Gold Dealers. "If the interest rate turned around, it
would probably prompt people to dump gold and everything."
On the physical market, premiums in Hong Kong and Singapore
were little changed despite high prices, with those in
Singapore being around 50 to 80 cents, a dealer based in the
"I reckon customers are recovering from the aftershock of
$20 jump. Again it's a mixed market -- in Thailand we see both
physical demand and scrap selling, while Indonesian clients
have gone hiding this morning and nothing is seen from India so
far," said the dealer.
But in Tokyo, discounts for gold bars widened to $1 an
ounce to spot London prices, from 25 cents last week, as
holders cashed in on higher prices.
"The volume is limited because the yen is high," said a
Tokyo-based dealer, adding that retail prices have been stable.
Spot gold is poised to rise to $1,305 per ounce, given a
bullish momentum, according to a Reuters technical analyst.
Holdings in the world's largest gold-backed exchange-traded
fund, SPDR Gold Trust
, fell to 1,304.168 tonnes by Sept
21 from 1,304.472 tonnes on Sept 20. [GOL/SPDR]
Holdings in the world's largest silver-backed
exchange-traded fund, the iShares Silver Trust
127.81 tonnes, its biggest gain in nearly 10 months, to
rose nearly 2 percent to $536 an
ounce. The price hit a near 4-month high of $563 on Sept 15.
"The platinum group metals market is following the gold
market at this moment. As gold is at historical highs, same
type of speculation money is flowing into the PGM market and
prices have moved up sharply," said a second Tokyo-based
The weakness in the dollar has helped support bullion. The
dollar fell to a 7-week low against a basket of currencies
, after the Fed meeting intensified speculation it would
take more measures to bolster the economy. [USD/]
The dollar fell to its weakest on the yen since Japan
intervened last week. Bank of Japan Governor Masaaki Shirakawa
said the central bank will continue to provide ample liquidity
to markets, including funds supplied through currency
(Additional reporting by Lewa Pardomuan in SINGAPORE; Editing
by Manash Goswami)