Gold was firm on Thursday, underpinned by a soft dollar and expectations of further monetary easing in the United States, which traders said was likely to propel the metal to new all-time highs above $1 300. "Gold's momentum is slowing but it will grind higher towards $1 300 and beyond," a Swiss trader said. "Unemployment is rising in the US, so they have to open the gates for quantitative easing. The dollar collapsed a bit and this has underpinned gold," he added. The dollar has hovered around six-month lows against a basket of currencies, with liquidity drained due to holidays in much of Asia. A weaker dollar makes gold cheaper for holders of other currencies. The Federal Reserve edged nearer to giving the wobbling US economic recovery another shot in the arm on Tuesday by saying it stands ready to provide more support, which most analysts expect to come in the form of renewed large-scale asset purchases. As a hard asset and also a currency, gold tends to benefit during times of loose monetary policy because it cannot be devalued by printing. PRICES * Spot gold was bid at $1 292.80 at 09:14 SA time from $1 289.60 late in New York on Wednesday when it hit its most recent record high of $1 296.10 per ounce. * Silver was at $21.14 from $21.11, having reached a new 2-1/2 year high of $21.21 earlier in the session. * Platinum at $1 633.35 from $1 627. * Palladium at $543 from $538.25. DATA/EVENTS * Weekly US jobless claims at 14:30 SA time. * US existing home sales for August at 16:00 SA time. * US leading indicators for August at 16:00 SA time. * George Papandreou, Greek prime minister speaks in New York at 18:30 SA time. MARKET NEWS * Due to holidays in Japan, China, Hong Kong and South Korea, Reuters will not be issuing a Global Markets report from Asia on Thursday. * The US dollar was on the defensive on Thursday as speculation that the Federal Reserve will soon start printing more money drove down Treasury yields and kept the greenback pinned near a five-month low on the euro. * US stocks slipped on Wednesday, ending the Dow's five-day winning streak, following Adobe's discouraging revenue outlook and investors' disappointment over Microsoft's new dividend. * Oil was steady below $75 on Thursday after government data showed an unexpected increase in US. crude and gasoline stockpiles, ahead of key jobs and housing reports later in the day. FUNDAMENTALS * The same investor nervousness that has led to record gold prices, could just as quickly bring about the demise of the bullion bulls, Aaron Regent, president and chief executive of Barrick Gold Corp said. * At the annual Denver Gold Forum that runs through Wednesday, executives of gold mining companies such as Barrick, Newmont and AngloGold Ashanti updated investors on the state of the industry as the price of the precious metal hovers around record highs amid rising production costs. * Northam Platinum said on Wednesday it failed to reach a deal over wages in its latest talks with the South African union as a strike that is costing $1.3 million a day in lost revenue enters its third week. TECHNICALS * Gold support at $1 271 an ounce, resistance at $1 300 and 14-day RSI at 77.1 * Platinum support at $1 595 an ounce, resistance at $1 640 and 14-day RSI at 76. * Silver support at $21.80 an ounce, resistance at $21.35 and 14-day RSI at 80. - Reuters

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