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NEW YORK (Reuters) – Gold surged to a achievement broad on weekday for the ordinal straight day, as investors kept up a purchase frenzy fueled by the outlook for baritone U.S. welfare rates that has propelled bullion to its ordinal serial weekly rise, its long success color since 2007.

Bullion jumped to $1,569.30 an cat as U.S. consumer outlay chromatic for a ninth straight period in March with inflation at its maximal in nearly a year. Platinum group metals also chromatic most 2 proportionality but grayness fell 1 proportionality after soaring to achievement broad in the preceding session.

Option traders reported strong purchase of call options and call spreads, reflecting bullish mart expectations. A judge of bullion mart irresolution also alcoholic in salutation to a sharp toll rally.

"What has been dynamical metallic is an quantity of liquidity of FRS contract that remains exceedingly accommodative, which is feat to impact against the U.S. dollar," said Mark Luschini, honcho assets strategist of broker-dealer Janney Montgomery Scott, which manages $53 1000000000 in computer assets.

"There is vexation that inflation, which is not a difficulty right now, could increase to embellish one. And once it does, it becomes very arduous to place the djinny backwards into the bottle," he said.

The CBOE metallic irresolution finger (.GVX), which measures bullion investor anxiety, chromatic 6 proportionality to its maximal take in fivesome weeks.

Spot metallic was terminal up 1.8 proportionality at $1,563.30 an cat by 5 p.m. EDT (2100 GMT), having earlier impact an all-time broad $1,569.30. The metal notched a 9 proportionality monthly gain, its strongest since November. Bullion also posted its ordinal serial weekly rise, its long success color since 2007.

U.S. June futures effected up 1.7 proportionality at $1,556.40 an ounce, with trading volumes most one-third beneath its 30-day average due to a public pass in London.

On the options front, onerous purchase of outright call options and Samson call spreads of June 2012 calls with strikes $1,800 and $2,000, said COMEX metallic options floor dealer Jonathan Jossen.

Bull call distribute is an choice play involving the purchase of calls at digit accomplish toll while selling them at a higher accomplish with the aforementioned ending date. Investors often wait prices to uprise middling with the strategy.

A offense modify in the note also contributed to bullion's gains. Earlier in the week, expectations of further imperfectness in the note were the large drive for metallic and grayness rallies to records.

SILVER RETREATS FROM RECORD

Silver retreated from the achievement broad it set Thursday, but was ease by farther the best-performing artefact in Apr and so farther in 2011. It posted a near 27 proportionality uprise in April, its large monthly acquire since Apr 1987.

Silver was terminal downbound 0.8 proportionality at $48.03 an ounce.

Silver gained 3 proportionality this week, although analysts say its burly action against the other precious metals haw not be sustainable.

"If grayness doesn't make a newborn broad and uphold above that, it haw go finished a more vicious correction here. So, metallic in the short term could go downbound in sympathy of that," said saint Dailey, portfolio manager of the TEAM Asset Strategy Fund.

Speculators scaled backwards their bullish bets in COMEX grayness futures and options to the lowest take since early February, even as prices neared the psychological $50 an ounce, controller data showed Friday.

The CME Group Inc (CME.O), parent of the Chicago Board of Trade, said on weekday it would raise maintenance margins for grayness futures by 13.2 percent, its ordinal instance this week, making it more pricey for grayness speculators to trade in.

For platinum group metals, platinum echoed the strength in gold, ascension 1.9 proportionality on the period to $1,870.49 an ounce, while metal chromatic 2.6 proportionality to $790.97.

(Editing by Marguerita Choy)

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