Gold rose to a record high above $1,070 an ounce on Wednesday as the dollar slid to new 14-month lows against the euro and oil prices rose toward $75 a barrel, boosting interest in commodities as an asset class.
But with the precious metals all having posted sharp gains in recent sessions, they could be poised for a period of consolidation before hitting fresh highs, analysts said.
Spot gold reached a high of $1,070.40 an ounce, and was bid at $1,065.20 an ounce at 0935 GMT (5:35 a.m. EDT) against $1,063.35 late in New York on Tuesday.
The dollar index .DXY, which tracks the currency's performance against a basket of six others, hit its lowest since August 2008 as traders bet on U.S. interest rates staying low, with rising commodities denting its safe-haven appeal.
"As long as they keep selling the dollar there is no reason not to continue to buy gold and that seems to have been the prevailing sentiment over the last few days," said Ole Hansen, senior manager at Saxo Bank.
"The CRB index has had a 4 percent lift over the last week, so there has been good appetite for commodities," he said. "Crude oil has started to make a move on the upside...so that could be the next trigger for an additional shift higher in commodities."
The Reuters-Jeffries CRB index .CRB, seen as a global commodities benchmark, rose to two-month highs on Tuesday as oil, base and precious metals prices rallied.
Oil prices extended gains on Wednesday to set a new 2009 high of $75.12 a barrel, boosted by a weak dollar and surprisingly strong Chinese trade data.
On the wider markets, European shares rose close to a one-year high as risk appetite was improved by reassuring earnings from Intel (INTC.O) and ASML (ASML.AS). .EU
OVERBOUGHT TERRITORY
Demand for physical gold is still lackluster in key markets as prices hold near record levels. In India, the world's biggest bullion consumer last year, demand was slack despite the onset of the festival period as prices rose.
Among other precious metals, platinum, silver and rhodium also hit their highest levels in more than a year on Wednesday. Platinum touched a peak of $1,362.50 an ounce in Asian trade, and was later bid at $1,356.50 against $1,358.50.
Silver hit a 14-month high of $18.07 an ounce, and was later at $17.92 versus $17.75. The world's main primary silver producer Fresnillo (FRES.L) said it sees silver near $17-18 an ounce for the rest of 2009.
Autocatalyst material rhodium rose $25 an ounce to a year-high of $1,725, while palladium was at $323.50 versus $325.50. It hit a 14-month high of $333 on Tuesday.
However, the precious metals may be poised for a correction after rising sharply in recent days.
