* Cash gold, futures hit record; silver strikes 30-year high
* Technicals point upward at $1,330/oz [ID:nSGE68S017]
* Coming Up: U.S. mortgage index, weekly; 1100 GMT (Updates with bullion price at record)
SINGAPORE, Sept 29 (Reuters) - Gold hit a lifetime high on Wednesday, its 10th record in 12 sessions, as the dollar dropped against a basket of currencies on expectations the Federal Reserve would take new measures to shore up the economy.
Silver surged to a 30-year high as ETF holdings jumped to another record, palladium rose to a five-month high to track higher base metals prices [MET/L], while a firm yuan raised hopes of more buying from gold consumers in China.
The Fed is likely preparing a fresh round of quantitative easing measures to announce at the end of its Nov. 2-3 meeting, a report by influential hedge fund adviser Medley Global Advisors said on Tuesday, a source told Reuters. [ID:nN28181349]
Gold rose as high as $1,312.05 an ounce and was at
$1,311.55 by 0453 GMT, up $4.15 from New York's notional close.
U.S. gold futures also surged to a record."We are on a bullish mood. The economy in the U.S. is weak and the Fed will be launching some more rescue packages," said Ronald Leung, director of Lee Cheong Gold Dealers in Hong Kong. "The appreciation of the yuan causes some people in mainland China to buy a bit of gold."
London silver fix price reached $25 in September 1980, according to The Silver Institute, a U.S.-based industrial group. Silver's main sources of demand are for use in industrial applications such as semi-conductors and jewellery.
The world's largest silver-backed exchange-traded fund, the
iShares Silver Trust , said its holdings rose to a record
of 9,756.04 tonnes by Sept 28 from 9,613.02 tonnes on Sept 24."Silver is cheaper is compared with gold. Even at $25, it is still cheap," Lee Cheong Gold's Leung said. "I would say silver still attracts some buying. The industrial side has to buy."
The dollar extended its losses against a basket of currencies to hit an eight-month low on Wednesday, hurt by recent market speculation the Fed may embark on a second round of quantitative easing later this year. [USD/]
The yuan rose to its highest level since the
Chinese currency's July 2005 revaluation amid lingering
pressure from Washington on Beijing to let the yuan appreciate.
[ID:nTST000485] U.S. gold futures for December delivery hit a
lifetime high at $1,313.5 an ounce, exceeding Tuesday's record
of $1,311.80."Add federal budget deficits exceeding $1 trillion a year for several years to come, and an economy that can't produce enough to sustain Barack Obama's appetite to tax and spend, and investors are simply smart to short the dollar by loading up on gold," said University of Maryland business school professor Peter Morici.
"That's why gold is $1,300 an ounce!" he said in a note.
The world's largest gold-backed exchange-traded fund, SPDR
Gold Trust , said its holdings rose to 1,305.688 tonnes
by Sept 28 from 1,300.521 tonnes on Sept 24. The holdings hit a
record at 1,320.436 tonnes on June 29. [GOL/SPDR]The physical market lacked activity, but premiums were steady at 50 to 80 cents to spot London prices in Singapore and at 80 cents in Hong Kong. <GOLD/ASIA1> Precious metals prices at 0453 GMT Metal Last Change Pct chg YTD pct chg Turnover Spot Gold 1311.55 4.15 +0.32 19.70 Spot Silver 21.83 0.14 +0.65 29.71 Spot Platinum 1645.50 13.85 +0.85 12.17 Spot Palladium 567.50 10.35 +1.86 39.95 TOCOM Gold 3542.00 36.00 +1.03 8.68 33732 TOCOM Platinum 4452.00 57.00 +1.30 1.62 10710 TOCOM Silver 59.00 1.10 +1.90 14.12 1335 TOCOM Palladium 1529.00 48.00 +3.24 31.24 494 Euro/Dollar 1.3592 Dollar/Yen 83.74 TOCOM prices in yen per gram. Spot prices in $ per ounce. (Editing by Manash Goswami)
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