Gold hits 4th straight record, silver at 27-year high

By Lewa Pardomuan

March 03, Reuters

SINGAPORE - Gold edged closer to the $1,000 an ounce mark on Monday, setting a record high for the fourth straight day after the dollar tumbled and crude oil held near an all-time high.

Silver jumped to $20 an ounce for the first time since November 1980 to track gold. Platinum and palladium held near their recent highs, while a firming yen ignited selling in yen-denominated Japanese precious metals futures.

Gold jumped as high as $984.60 an ounce, partly driven by purchases from Japanese speculators who took advantage of the dollar's drop to a three-year low against the yen. Gold was last quoted at $973.30/973.75 in New York on Friday.

Gold has gained around 18 percent in 2008 as investors shift some of their money into the precious metal on expectations of more interest rate cuts in the United States, volatile stock markets and fears of rising energy costs.

"Everybody talks about $1,000. There's Japanese buying. It's cheaper for them to buy," said Ronald Leung, director of Lee Cheong Gold Dealers in Hong Kong, adding that investors may also book profits when gold eventually hit $1,000.

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photo: A woman holds a gold bar in Bangkok January 30, 2008. Gold edged closer to the $1,000 an ounce mark on Monday, setting a record high for the fourth straight day after the dollar tumbled and crude oil held near an all-time high (REUTERS/Sukree Sukplang)