PRECIOUS-Gold surges to record on euro,silver hits 31-year peak

* Bullion strikes record, silver at 31-year high

* Gold to rise to $1,477-technicals [ID:nL3E7F807C]

(Updates prices, adds quotes)

By Lewa Pardomuan

SINGAPORE, April 8 (Reuters) – Gold struck another record
high on Friday as the dollar weakened against the euro, while
silver hit a 31-year high after ETF holdings rose peaked on
inflation worries driven by a surge in oil prices.

A strong aftershock in Japan on Thursday initially put
pressure on the Nikkei, but investors turned their attention to
the prospect of more declines in the dollar following the
European Central Bank’s first rate hike since 2008.

Spot gold rose as high as $1,465.56 an ounce, a
record high, with an increase in SDPR holdings offering
additional support.

“Maybe there is some dollar-related buying because it’s
weakening. People see the ETF increasing a bit, so they want buy
some gold,” said Ronald Leung, director of Lee Cheong Gold
Dealers in Hong Kong.

“There’s a small amount of physical buying. Jewellers are
covering short, but it’s a very small amount. Everybody is
looking for a new high, maybe $1,500 or $1,600.”

The world’s largest gold-backed exchange-traded fund, SPDR
Gold Trust , said its holdings rose to 1,217.209 tonnes by
April 7, their highest since mid-March, from 1,205.467 tonnes on
April 6.

Spot gold is poised to rise to $1,477 per ounce based
on its wave pattern and a Fibonacci projection analysis,
according to Wang Tao is a Reuters market analyst for
commodities and energy technicals.

For a 24-hour gold technical outlook: http://graphics.thomsonreuters.com/WT1/20110804101015.jpg

Spot silver hit an intraday high of $39.95 an ounce,
its strongest since 1980, as rising oil prices boosted its
appeal as a hedge against inflation and a cheaper alternative to
bullion.

IShares Silver Trust said its holdings hit another
record at 11,192.80 tonnes by April 7 from 11,162.45 tonnes on
April 4. [ID:nL3E7F800Y]

U.S. gold futures for June hit $1.467.50 an ounce,
another record high.

The euro rose to its highest level in almost 15 months
against the dollar on Friday as a mildly firmer risk environment
from higher equity markets and rising oil prices boosted flows
into the single currency.

The European Central Bank raised interest rates for the
first time since the 2008 financial crisis on Thursday and
signalled it was ready to tighten policy further if needed to
check rising prices. [ID:nLDE7351QH]

ICE Brent crude on Friday surged to a 2-1/2-year high above
$123 a barrel as unrest in Libya and the Middle East offset a
major aftershock in Japan.

A strong performance from major retailers pushed up Tokyo
stocks by nearly 1 percent after April options prices were seen
settling higher than expected, offsetting the impact of a major
earthquake which rocked northeast Japan the night before.

“I would say the quake has little impact, but we do see
selling from the physical market which cuts the premium,” said a
dealer in Tokyo, referring to sales of gold bars as bullion
price rose. [ID:nL3E7F72Y2]

Gold bars were offered at a discount of 25 cents to the spot
London prices, having been quoted on par earlier this week.

(Reporting by Lewa Pardomuan; Editing by Ed Lane)

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PRECIOUS-Gold surges to record on euro,silver hits 31-year peak