Metals - Gold hits new 28 year peak, platinum surges to new record high

Metals - Gold hits new 28 year peak, platinum surges to new record high

	Published : Mon, 15 Oct 2007 09:40 By : Agencies Print this Story

LONDON (Thomson Financial) - Gold rose to a new 28 year peak as the US dollar weakened further against the euro and as oil prices held near new record levels set on Friday, sparking inflation concerns.

Meanwhile, platinum set a new all-time record on continuing supply worries in South Africa.

On Friday, the country's largest mining union said it plans a one-day strike over deaths and accidents at mines.

The news came amid continuing supply disruptions at Anglo Platinum's facilities in South Africa. The disruptions are a result of power outages in the country that began last week and could last through this week.

'Platinum... continues to hold the most bullish forecast of the precious complex as the already tight fundamentals could be made tighter still should South African mine workers strike,' said TheBullionDesk.com analyst James Moore.

At 9.37 am, spot platinum was quoted up at 1,420 usd per ounce against 1,417 usd in late New York trades on Friday, having just set a new all-time record high of 1,422 usd per ounce.

Spot gold was up at 756.30 usd per ounce against 748.75 usd in late New York trading, having just climbed to 756.40 usd -- its highest point since Jan 1980.

'Gold... looks set to make further tests higher in the coming sessions as both speculative and investment money flows into the market,' said Moore.

He added investors will also continue to look to gold as a hedge against inflation, particularly with oil prices set to remain high as winter approaches in the northern hemisphere.

Elsewhere, silver was up at 13.93 usd per ounce against 13.79 usd, while palladium rose to 376 usd per ounce against 374 usd.

maytaal.angel@thomson.com

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