Gold hits record above $1,100/oz


LONDON - Gold hit a record high above $1,100 (U.S.) an ounce in Europe on Monday as the U.S. dollar slid on expectations interest rates will remain low, boosting interest in the precious metal as an alternative asset.

Spot gold reached a peak of $1,108.55 an ounce, and was bid at $1,106.55 an ounce at 0937 GMT, against $1,096.30 late in New York on Friday.

The precious metal extended last week's near 5 per cent gains, when fund buying took it to a series of record highs in the wake of India's central bank buying 200 tonnes of gold from the International Montary Fund and the dollar weakening further.

"Gold is unstoppable," said Michael Kempinski, a senior trader with Commerzbank. "The forex market helps, and technically it seems pretty good. And as we know, funds like to take more in on the highs to push (prices) further."

U.S. gold futures for December delivery on the COMEX division of the New York Mercantile Exchange rose $13.10 to $1,108.80 an ounce.

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Among other precious metals.

Silver was bid at $ 17.70 an ounce versus $17.38.

Platinum at $1,354 an ounce versus $1,342.50.

Palladium at $330 against $327.50.

Both platinum and palladium held near the multi-month highs they hit in late October, as traders bet strength in gold prices and an expected recovery in demand from carmakers, the major consumers of the platinum group metals, will buoy prices.

Data released on Monday showed China's passenger cars sales surged 75.8 per cent in October from a year earlier, extending the explosive growth of recent months as government incentive policies continued to lure customers.

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Base Metals

Copper rallies on demand outlook, weak dollar

* Dollar down more than 1 pct against major currency basket

* LME copper stocks rise, aluminium inventories fall

* Chinese trade data due later in week

LONDON, Nov 9 (Reuters) - Copper rallied on Monday on a
brighter demand outlook after Codelco, the world's top copper
miner, raised premium charges for Asian customers in 2010.

Three-month copper futures on the London Metal Exchange
traded at $6,602 a tonne by 1054 GMT, from a close of
$6,490 on Friday, when soft U.S. job data hurt sentiment.

Chile's Codelco raised its term premium for copper to the
Japanese port of Yokohama to $75 a tonne in 2010, and to $74 for
South Korean buyers, in anticipation of rising demand in parts
of Asia, industry sources said on Monday.

A weaker dollar also boosted industrial metals.

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Aluminium was at $1,934.75 from $1,910. Stocks of the
metal used in transport and packaging fell 2,475 tonnes to
around 4.5 million tonnes, losing grip of this year's record
highs around 4.6 million tonnes.

Zinc was at $2,222 from $2,174.

Lead was at $2,309 from $2,250.

Tin traded at $15,000 from $14,750.

Nickel was at $17,600 from $17,350.

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24 Hour Base Metals

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Gold & PGM Prices

Nov 9 2009 8:10AM NY Time dd Change Gold 1108.10 +1.02% Platinum 1357.00 +1.04% Palladium 331.00 +0.61% Rhodium 1850.00 +0.00%