LONDON, Feb 12: Gold climbed in Europe on Thursday, building on gains that took it to a 6-1/2 month high in the previous session, as risk aversion fuelled investor demand for bullion and gold-backed exchange traded funds.

Gold priced in sterling and gold futures in India hit an all-time high, adding to record peaks recorded for bullion on Wednesday in euro, Canadian dollar and Swiss franc terms.

Spot gold was quoted at $943.10/944.70 an ounce up from $938.35 an ounce late in New York on Wednesday. The metal hit a peak of $953.30 that day, its highest since July 2008.

Gold is still in a very bullish trend, said Alexander Zumpfe, precious metals trader at Heraeus.

There is very strong investor demand, which you see when you look at the data coming from the ETFs, which are at record levels. The world’s largest gold-backed ETF, New York’s SPDR Gold Trust, said its holdings rose nearly 5 per cent on Wednesday.

Gold prices rallied soon after the opening of the New York market, suggesting heavy buying. ETFs and physical gold products such as coins and bars have proved popular with investors as the global slowdown shows little sign of abating.

Gold is still decoupled from movements in the currency markets, which means at the moment it has a life of its own, said Heraeus’ Zumpfe.

Oil prices meanwhile were little changed just below $36 a barrel as fears over demand weighed. In supply news, South Africa said its gold output fell 17.6 per cent year-on-year in December. The republic is the world’s second largest producer of gold after China. The IMF also told Reuters it had no intention of changing plans to sell 403 tons of gold once it has received Congressional approval to do so.

Holdings of the largest silver-backed ETF, the iShares Silver Trust are currently at an all-time high of nearly 7,607 tons.

Spot platinum was at $1,080/1,085 an ounce against $1,067, while spot palladium was at $214/218 an ounce against $212.—Reuters