Spot gold prices were steady on Monday, after posting a 30 percent gain last year, and silver rose to a 30-year peak above $31 on a bullish market outlook for this year, but a stronger dollar weighed. The dollar gained nearly half a percent on Monday, building on gains from 2010, as investors gear up for gains in early 2011 on expectations the US economic recovery was gaining momentum.
-- Silver hits 30-year high on firm outlook "This morning some profit-taking interest depressed the market, but gold still has very good support from fresh buying and short-covering," said Peter Fung, head of dealing department at Wing Fung Precious Metals in Hong Kong, adding that any dip below $1,400 will trigger buying interest.
Fung expected gold to trade in the range of $1,410 to $1,425 during the first trading day of the year, when volumes were still thin as key market players including China, Japan and Australia were out of action on holiday. Spot gold was little changed at $1,418.90 an ounce by 0844 GMT. It touched $1,421 earlier, just shy of a three-week high of $1,421.15 hit on December 31.
Gold and other precious metals still enjoy bullish outlook, as economic uncertainties and inflation worries keep fanning safe-haven demand, while an improved economic outlook underpins strength in silver as well as platinum group metals, which are used in various industries. Spot silver touched a 30-year high of $31.02, and retraced to $30.92. It posted an 83 percent gain in 2010, following top performer palladium's 97 percent rise.
Holdings in the world's largest silver-backed exchange-traded fund, iShares Silver Trust, rose for the first time since December 17 to 10,921.57 tonnes by December 31 from 10,903.34 tonnes. Spot platinum rose to $1,775.50, its highest since November 10, before easing to $1,772.
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