POLL-Fear to boost gold, industry pain to hit platinum

By Jan Harvey

LONDON, Jan 26 (Reuters) - Gold prices are expected to hold firm this year as investors, looking for safety away from the mayhem in financial markets, pile into the precious metal used as a store of value, a Reuters survey showed.

But the survey also showed prices of industrial precious metals platinum, palladium and silver are expected to drop further as recession and tumbling consumer and corporate confidence hits demand.

The survey of 56 precious metals analysts and traders was carried out over the last three weeks. It showed gold prices would average $862.50 an ounce this year -- only about $10 below the 2008 average price of $871.21 an ounce.

Gold usually trades in the opposite direction to the dollar, and was expected to come under pressure from a recovery in the U.S. currency. However, it is showing signs of decoupling from the dollar and was bid at $903.20 an ounce at 1030 GMT on Monday XAU=.

"Widespread financial turmoil is the number one factor for gold," said Calyon analyst Robin Bhar. "It seems both the dollar and gold could be beneficiaries of the flight to quality."

"Whereas in the past, when people went into the dollar it was negative for gold, it (now) seems they can go up together, because people are looking for something that is a safe store of value."

Gold is expected to climb through 2009, with prices seen at a median $880 an ounce in the fourth quarter compared to $825 an ounce in the first three months of the year. The average forecast for 2010 also stands at $862.50 an ounce.