GOLD HITS ALL-TIME HIGH

       Gold climbed to a record US$1,048 (Bt35,100) per ounce yesterday as the US dollar weakened and higher commodity prices spurred demand for precious metals as a hedge against inflation.
       The Dollar Index fell for a fourth day, while crude-oil futures advanced to more than $70 a barrel for a third day. When gold passed $1,000 in February, sales of scrap metal sent prices down as much as 16 per cent in less than two months.
       "We're seeing no selling," Frederic Panizzutti, senior vice president of refiner MKS Finance, said in Ho Chi Minh City.
       "I would not be surprised to see $1,100 by the end of the year."
       Gold for immediate delivery rose as much as $6.33, or 0.6 per cent, to $1,048.43 an ounce in London and recently traded at $1,043.43. Spot prices are up 18 per cent this year, heading for a ninth consecutive advance. Gold for December delivery jumped as much as $10, or 1 per cent, to a record $1,049.70 an ounce on the Comex Division of the New York Mercantile Exchange and was at $1,044 early yesterday morning.
       Palladium rose as much as 2.3 per cent to $315 an ounce, its highest since August 14, 2008.
       "There's talk of inflation re-emerging and continuing weakness in the US dollar, which suggests the gold price may well continue to climb higher," said William Seddon, who helps manage $300 |million at White Funds Management in Sydney.
       Holdings in the SPDR Gold Trust, the biggest exchange-traded fund backed by the metal, increased 1.53 tonnes to 1,098.07 tonnes yesterday, the company's website showed.
       In Thailand, Gold Traders Association president Jitti Tangsithpakdi said due to yesterday's historic high for gold prices, local gold-bar prices rose between Bt250 and Bt400 to Bt16,350 per baht weight for buying and Bt16,450 for selling, while gold ornaments were quoted at Bt16,115.08 for buying and Bt16,850 for selling.
       He believes the jumps were due mainly to speculation amid a weakened dollar and said the global price would likely surge to $1,060 an ounce.
       Jitti said the stronger baht was making local gold prices increase at a slower pace. Yesterday, the baht reached 33.35 to the dollar. If the currency weakens, the local gold-bar price could surpass Bt17,000 per baht weight.
       YLG Bullion International chairman Pawan Nawawat-tanasub believes the resistance level of global gold has now shifted to $1,050 an ounce, with $1,033 a short-term strong support level.
       She said gold prices had risen above the fundamental level, as the price at gold mines was only $750.
       "It's highly possible that gold prices will rise to $1,100 by year-end, but the rally will come mainly from short-term speculation in hedge funds," Pawan said.
       She said due to fundamental factors, she felt gold prices were unlikely to hit $2,000 $1,500 or even $1,200 as |forecast by some Western economists.