Gold disc for the key, for the third weekly Gain, the problem of debt

April 22, 2011, 3: 23 pm EDT by Sungwoo Park and Hur Jae

April 22 (Bloomberg) - Gold advanced to a record, set for a third weekly gain as a weakening of the dollar and concerns of the debt has rekindled the metal as an alternative investment appeal. Silver gained at the highest level for 30 years.

Immediate delivery gold reached a record level of $1,511.47 an ounce before negotiating a $1,507.38 at 4: 10 a.m. in Seoul. The metal is up to 1.4 percent this week. Futures for delivery in June yesterday hit a record $ 1,509.60 on Comex in New York. The most active contract posted a record 10 times this month. The Exchange is closed today in respect of day Friday. "The weakness of the dollar is having the most influence on gold at the moment," has said UN Soo Chae, a trader based in Seoul, Korea Exchange Bank Futures Co. "the market becomes more unstable now that we are concerned about the United States in addition to Europe's sovereign debt and the problems of the Middle-Orientqui stimulates more refuge demand for gold. "The dollar slipped to the lowest level since August 2008 against a basket of six major currencies yesterday on speculation that the Federal Reserve is slow to raise borrowing costs. The Dollar Index is little changed today. The Fed has kept the reference rate between zero and 0.25 percent since December 2008 and is committed to buy $ 600 billion in treasuries until June to stimulate the economy.Standard & Poor this week revised its Outlook for debt for the United States to negative from stable. Violence in the Middle East, and disorders of sovereign debt in the nuclear crisis in Europe at the Japan helped propel bullion 31 per cent higher than in the last year. "Global trade of gold and other precious metals was extremely thin due to the feast of the market, the United States and the United Kingdom" said Hiroyuki Kikukawa, Director General of research at IDO Securities Co. in Tokyo.Silver for immediate delivery climbed 0.6% to $46.86 an ounce "the highest price since 1980. The metal reached 9% this week, called for a fifth advance weekly. It was the most high weekly gain since palladium Spot for February 18 fell 0.7% to $765 ounces, while that cash Platinum was 0.3 for 100 more high to $1,821 an ounce.

-Editors: Jarrett banks, Richard Dobson

To contact the reporters on this story: Sungwoo Park in Seoul to spark47@bloomberg.net; Hur Jae in Tokyo at the jhur1@bloomberg.net

To contact the editor responsible for this story: James Poole at jpoole4@bloomberg.net

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