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PRECIOUS-Gold hits all time high, eyes on Fed's next move

 * 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 XAG= surged to a 30-year high as ETF holdings
jumped to another record, palladium XPD= 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 XAU= 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 SLV, 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 CNY=CFXS 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 GCZ0 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 GLD.P, 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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