NEW YORK (Reuters) - Gold surged to a record high Friday is for The Third straight day, as investors Kept up a buying frenzy Fueled By The Outlook for U.S. Interest Rates Low That has propelled bullion to seventh consecutive weekly rise ITS, ITS longest winning streak since 2007.
Bullion jumped to $ 1569.30 a year as U.S. Consumer Spending ounce rose for a ninth straight month in March With inflation at Its Highest in Nearly a year. Platinum Group Metals aussi rose about 2 percent to 1 percent silver Fell after soaring to record High in the previous session.
Option traders Reported strong buying of call options and call spreads, Reflecting bullish market expectations. A gauge of Bullion Market Volatility aussi spiked in response to a sharp price rally.
"What has-been driving gold Is an Abundance of liquidity of Fed policy exceedingly accommodative That Remains, Which Is Going to Work Against the U.S.dollar, "Said Mark Luschin, chief investment strategist of broker-dealer Janney Montgomery Scott, $ 53 marriages Which one billion in client assets.
"There Is That inflation worry, Which Is Not a problem right now," could escalate to Become One. And it Does ounces, it very difficulty to put Becomes The Genie Back Into the Bottle, "he said.
The CBOE Gold Volatility Index (. GVX), Which Measures bullion investor anxiety, rose 6 percent to Highest Level in icts five weeks.
Spot gold up 1.8 percent last WAS at $ 1,563.30 a year ounce by 5 pm EDT (2100 GMT), HAVING Earlier year hit an all-time high $ 1,569.30. The metal has notched nine percent monthly gain, icts Strongest sincere November. Bullion posted aussi seventh consecutive weekly rise icts, longest winning streak icts since 2007.
U.S.June up 1.7 percent future Settled at $ 1556.40 annually ounce, trading volumes With about one-Third icts below 30-day average due to a public holiday in London.
On the options front, heavy buying of call options and outright bull call spreads of June 2012 Call with strikes $ 1.800 and $ 2,000, COMEX gold options floor Said Jonathan Jossen trader cash advance today.
Bull call spread option play ya une chantiers The Buying of calls at one strike price while selling at a Higher Strike Them With The Same expiration date. Often investors expect Price to Rise Moderately With The strategy.
A slight drop In The dollar aussi Contributed to bullion's gains. Earlier in the Week, expectations of Further Weakness In The dollar Were the Biggest drive for gold and silver rallies to record highs.
SILVER RETREAT FROM RECORD
Silver retreated from the record high it set Thursday, goal WAS stills by far The best-performing commodity in April and so far in 2011.It posted a near 27 percent rise in April, icts Biggest monthly gain since April 1987.
Silver WAS 0.8 percent last down $ 48.03 at year ounce.
Silver Gained 3 percent this week, although analysts say icts robust performance Against The Other Precious Metals May Not Be sustainable.
"If silver Does not Make a new high and sustain Above That, It May Go Through a more vicious correction here.So, Gold in the short term "could go down in sympathy of That," Said James Dailey, TEAM Portfolio Manager of the Asset Strategy Fund.
Their bullish speculator scaled back bets in COMEX silver futures and options to The Lowest Since early February level, Even As Prices neared $ 50 a year The Psychological ounce, regulator data showed Friday.
The CME Group Inc. (CME.O), parent of The Chicago Board of Trade Thursday Said It Would it raise future maintenance margins for silver by 2.13 percent, the second time this week STI, making it more expensive to trade for silver in Speculator.
For Platinum Group Metals, Platinum echoed The strength in gold, rising 1.9 percent is the Day to $ 1,870.49 a year ounce, while palladium rose 2.6 percent to $ 790.97.
(Editing by Marguerita Choy)
