By Melanie Burton LONDON, Sept 17 (Reuters) - Gold retreated from record highson Friday, as a firmer dollar tempered the momentum, althoughconcerns about further quantitative easing in the United Statescushioned prices. Sister-metal silver was supercharged, benefiting also fromgains in prices for industrial metals to test the $21 mark. Abreak above $21.24 would open the way for prices to hit levelslast seen in October 1980.. Spot gold hit an all-time high of $1,282.75 a troy ouncebefore easing to a bid at $1,276.50 by 1215 GMT, compared with$1,272.20 late in New York on Thursday. It has gained more than$100 or 8.4 percent since the start of August. "It's partly a currency move. There's certainly investornervousness about monetary policy around the world since the yenintervention," said precious metals strategist Matthew Turner ofMitsubishi Corp. "A lot of people are sensing a race to the bottom by centralbanks to print more of their currency, to reflate theireconomies and gold is getting support from that." The dollar gained ground against the euro on Friday on talkof an Irish bank in trouble, but remains close to one-month lowsagainst a basket of currencies. Dollar sentiment overall has been damaged by speculation ofmore quantitative easing from the U.S. Federal Reserve nextweek. Quantitative easing is a process by which central banksattempt to pump money into economies by printing money andbuying bonds. Excess liquidity can often lead to price pressuresas too much money chases too few goods and services. A lower U.S. currency makes dollar-denominated commoditiescheaper for holders of other currencies. Investors use gold as astore of value during times of high inflation or financialmarket turmoil. Holdings in the world's largest gold-backed exchange-tradedfund, SPDR Gold Trust, were flat overnight at 1,294.746 tonnes,having fallen the day before. But earlier this week the numberrose by more than 6 tonnes. The market shrugged off data that showed U.S. consumerprices increased slightly more than expected in August as foodprices rebounded and energy costs remained elevate, but coreprices were flat. SEASONALLY STRONG September and October are typically seasonally strongperiods for jewellery demand, with a number of small gold-buyingfestivals in major consumer India, while Western manufacturersstock up ahead of Christmas. Lending background support this week however, was news ofAngloGold Ashanti's capital raising, a key function of which wasto buy back its outstanding gold hedge. "They've raised the capital, but I haven't heard any strongrumours (that they have bought any gold)," said analyst RobinBhar of Credit Agricole. Spot silver was bid at $20.85 an ounce from $20.72 in NewYork on Thursday. "The last few months, silver has been benefiting as amonetary metal like gold, when things are looking bad, and as anindustrial metal when things are looking good. So investors arevery keen," Mitsubishi's Turner added. Expectations of stronger growth in the final few months ofthis year has helped boost industrial precious metals platinum,palladium and silver. However, silver is according to technical analysis,overbought and could be due a correction. "Silver is renowned for overshooting and undershooting, sothis rally can get more exponential but we are already up 18percent since late August," Kendall said. "In my opinion, that kind of rate of increase can't besustained. I would not be recommending anyone to get long orlonger silver at $21." Spot platinum hit $1,630 an ounce, its highest since May 19.It was last at $1,619 from $1,603.65 on Thursday and palladium was bid at $546.00 an ounce from $544.65. (Editing by Sue Thomas)

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