Gold edges above $1,400 in London trade

Gold notched up a second straight day of increases to near two-week highs on Wednesday, closing in on a tenth consecutive yearly gain as doubt reemerged over the US economic outlook and weakened the dollar. Palladium hit fresh nine-year highs, driven by expectations for robust demand next year, while silver hovered near three-week highs.
The latest US data, which showed consumer confidence unexpectedly worsening in December and a drop in prices of single-family homes in October, was at odds with other signs suggesting recovery was accelerating in the world's largest economy.
Spot gold rose 0.3 percent to $1,409.85 an ounce by 1624 GMT, after hitting a two-week high of $1,406.75 on Tuesday. US gold futures for February delivery were up $5.4 an ounce at $1,411.00. "Is gold a bubble? Perhaps, but the trend is still clearly 'from the lower left to the upper right' on the charts and in all currency varieties," said Dennis Gartman, author of the Gartman investment newsletter.
Gold is on track for a near 30-percent gain this year, fuelled by investors seeking an alternative to increasingly volatile currencies, stocks and bonds, against a backdrop of an uncertain US economic outlook and Europe's debt crisis. "The US economy outlook and monetary policy is a key factor that influences gold prices. We've seen data alternate between good and bad, showing that the economy is recovering, but without a strong momentum yet," said Hou Xinqiang, an analyst at Jinrui Futures based in China.
Spot silver hit a three-week high of $30.64 an ounce, and was last at $30.26, still up 1.0 percent on the day, led by a broad push higher across the commodities complex, with copper at record highs and crude oil steadying above $91 a barrel. The gold-silver ratio, which reflects the number of ounces of silver needed to buy one ounce of gold, fell to a new four-year low of 46.6, compared with a s10-year average of 62.2. Spot palladium reached a session peak of $793.50, its highest since March 2001, before trading at $791.50, up 0.8 percent on the day. Platinum was trading at $1,745.49, down 0.4 percent, but still near seven-week highs.