* Gold comes under pressure as dollar swings higher
* Platinum hits highest since July 2008, palladium 2-yr peak
* GFMS says platinum will stay in surplus in 2010
* Consultancy sees palladium better placed fundamentally
(Releads, updates prices, adds detail)
By Jan Harvey
LONDON, April 22 (Reuters) - Gold fell on Thursday as the
dollar rose versus the euro, with a Moody's ratings downgrade
and new budget deficit data reigniting fears over the outlook
for debt-laden Greece and pressuring the single currency.
Spot gold <XAU=> was bid at $1,135.35 an ounce at 1454 GMT,
against $1,145.30 late in New York on Wednesday. U.S. gold
futures for June delivery <GCM0> on the COMEX division of the
New York Mercantile Exchange fell $12.70 to $1,136.10 an ounce.
However, the precious metal held its ground above $1,135 as
some investors were attracted to gold as an alternative to
volatile paper currencies.
"Gold has been beaten back a bit, but it is not doing too
badly," said Marc Elliott, an analyst at Fairfax investment
bank. "The dollar is attractive as a safety currency, but gold
has that attraction too.
"You have the short-term knee-jerk reaction, which is that
the flight to the dollar knocks gold, but that settles down as
people want a longer-term hedge."
The dollar rose to near a one-year high against the euro
after ratings agency Moody's said it had cut Greece's credit
rating, though it trimmed those losses after news that the
country may get a short-term bridge loan. []
It had already retreated in earlier trade after the European
Union's statistics office said on Thursday it had revised
Greece's 2009 budget deficit to 13.6 percent of gross domestic
product from 12.7 percent.
The dollar's move higher also pressured other precious
metals, with platinum retreating from its highest level since
mid-2008 at $1,751.50 an ounce and palladium falling back from a
two-year peak of $569, both reached in Asian trading hours.
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For a graphic showing the ratio of platinum to gold prices,
click on:
http://graphics.thomsonreuters.com/gfx/SBrb_20102204103742.jpg
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Further gains are forecast for both this year, however.
"Platinum and palladium are being driven by two major points
-- investment demand, which is still quite high, and the
industrial character of the metal at a time when the economy is
recovering," said Commerzbank analyst Daniel Briesemann.
PLATINUM SEEN IN SURPLUS, SAYS GFMS
The platinum market is set to remain in surplus again this
year, although to a lesser extent than in 2009, metals
consultancy GFMS said in its 2010 Platinum & Palladium report.
The market balances of both platinum and palladium are
expected to tighten a little this year as the automotive
industry recovers after last year's slump, but an expected drop
in jewellery buying may curb platinum demand. []
In an interview with Reuters, GFMS consultant Peter Ryan
said platinum's sister metal palladium was in the stronger
position from a fundamental point of view, and could hit highs
last seen in 2001.
A rise in car production after last year's slump is leading
to more industrial offtake of the metals, especially in China,
but speculation there will be further strong gains later in the
year is also fuelling investment ahead of the curve.
"Investors are still buying platinum and palladium in
expectation of a further increase in demand," said Commerzbank's
Briesemann. "If you look at Chinese car sales, they are still
showing growth, so there is certainly real demand."
Platinum <XPT=> was at $1,727 an ounce against $1,731, while
palladium <XPD=> slipped to $554.50 an ounce from $563. Silver
<XAG=> was bid at $17.82 an ounce against $18.03.
(Editing by James Jukwey)
