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Bullion hit all-time high of $2,431.29/ounce on Fri

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Silver set to outperform gold - ANZ

(Recasts as of 1031 GMT)

By Harshit Verma

April 15 (Reuters) - Gold prices took a breather on

Monday after hitting an all-time high in the previous session,

as investors sought after safe-haven assets amid heightened

conflict in the Middle East.

Spot gold was up 0.3% at $2,349.67 per ounce as of

1031 GMT. Prices hit a record high of $2,431.29 on Friday in

anticipation of Iran's retaliatory attack.

U.S. gold futures lost 0.3% at $2,366.10.

Iran launched explosive drones and missiles at Israel late

on Saturday in retaliation for a suspected Israeli attack on its

consulate in Syria on April 1.

"The market had already priced in this well-flagged event

last week, allowing it to consolidate after a very strong

run-up," said Ole Hansen, head of commodity strategy at Saxo

Bank.

"The appetite for gold has been extremely strong in recent

weeks and now with that we have a small setback, that could

potentially attract some fresh buying after the correction, as

underlying concerns about geopolitics remain."

Bullion has gained nearly 14% so far this year, ignoring

traditional headwinds such as a higher dollar and strong

economic data out of the United States.

Despite recent U.S. economic data showing strong labor

market and high inflation, Federal Reserve Bank of Boston

President Susan Collins is eyeing a couple of interest rate cuts

this year.

Lower interest rates reduce the opportunity cost of holding

bullion.

Spot silver rose 1.7% to $28.34 per ounce after

touching its highest level since early 2021 on Friday.

"Silver is set to outperform gold as investment flows surge

amid record-high gold prices. We expect gold to trade near

$2,500/oz and silver to move above $31/oz by the end of 2024,"

analysts at ANZ Research wrote in a note.

Platinum fell 0.6% at $970.15 and palladium

lost 0.8% to $1,040.68.