Gold at record for sixth day \

October 2, 2010 - 0:0

LONDON (Reuters) - Gold hit record highs for a sixth successive session on Friday as the dollar fell to a six-month low against the euro, with expectations for further U.S. monetary easing driving strong demand for the precious metal.

Spot gold touched a peak of $1,317.10 and was bid at $1,315.65 an ounce at 1013 GMT (6:13 a.m. EDT), against $1,305.25 late in New York on Thursday. U.S. gold futures for December delivery rose $8.20 to $1,317.80.
Gold looks resilient after ending September with its eighth consecutive quarterly gain, analysts say, having risen 6 percent in the third quarter.
""Despite the rejuvenating economic situation in the United States, the general view that the Fed would be forced to pump in economic stimulus in the form of QE 2 after the elections on November 10 is keeping bullish momentum intact,"" said Pradeep Unni, senior analyst at Richcomm Global Services.
""The economic situation is so fragile that any further deterioration in the data print may propel gold further north.""
The euro extended gains on Friday to hit a six-month high against the dollar after upbeat Chinese data encouraged risk taking in higher-yielding currencies and as Asian central banks were seen recycling dollars into the euro.
Dollar weakness tends to benefit gold, as it boosts gold's appeal as an alternative asset and makes dollar-priced commodities cheaper for holders of other currencies. With the U.S. currency seen extending losses to the end of the year, gold is expected to benefit.