* Precious metals take cue from currencies
* SPDR holdings stay at record high
* Platinum at six-month high, lifts palladium
(Recasts, updates prices and comments)
By Humeyra Pamuk
LONDON, March 25 (Reuters) - Gold rose more than 1 percent
on Thursday, as the dollar trims gains against the euro while
bargain hunting on the back of a weak U.S. currency sent
platinum and palladium to multi-month highs.
Spot gold <XAU=> rose to $942.35 per ounce at 1315 GMT, up
from $933.15 an ounce late in New York on Wednesday. Platinum
marched to its highest in six months, lifting sister metal
palladium nearly 6 percent to a 4-1/2 high.
"A lot of the market movements focus on the euro/dollar,"
said Manqoba Madinane, an analyst at Standard Bank in
Johannesburg. "That's the main factor driving the market and
euro's going higher."
The dollar edged down against a basket of major currencies
<.DXY> and fell against the euro <EUR=> to 1.3619 from 1.3575.
Gold is often viewed as an alternative asset to the dollar,
rising when the greenback falls. A weaker dollar also makes gold
less expensive for holders of other currencies.
Bullion is 7 percent off the 11-month high above $1,000 set
in February, and way below an all-time peak of $1,030.80 hit in
March 2008.
Madinane said gold would continue to march towards its
record high but the trend would take time as physical buying
runs out of steam and the high level of scrap material keeps a
lid on the market.
"I think in the short term $960 an ounce will be a
resistance level but bullion will continue to target $1,000 an
ounce," he said.
LOSING PACE
The U.S. economy contracted slightly more than previously
estimated in the fourth quarter, pulled down by falling consumer
spending and exports, while corporate profits plunged by the
biggest margin since 1994. []
The gloomy state of the world economy has boosted the
investment appetite for gold, which has since the start of the
year, with holdings in the world's largest exchange traded fund
hitting consecutive record highs.
But analysts said the pace of the rise was begininng to
slow. "I don't think we've seen the same level of investment
into ETFs in the way we have seen earlier this year," said Tom
Kendall, a precious metals strategist at Mitsubishi.
"Gold really hasn't got that much pressure to move rapidly
on the upside," he said. The SPDR Gold Trust <GLD>, said its
holdings remained at 1,124.99 tonnes on March 25, unchanged from
the record hit the previous day. []
Spot platinum <XPT=> touched $1,159.00 an ounce, its highest
since Sept. 26 and was last at $1,1156 an ounce versus $1,120 an
ounce late in New York on Wednesday.
"The euro being stronger against the dollar has encouraged
some industrial buying," said Commzerbank trader Rory McVeigh,
"Not much but enough in a very thin market to lift it."
Platinum's strength lifted sister metal palladium nearly 6
percent higher to $226.50 an ounce, its highest since Nov. 11.
It was at $221 an ounce versus Wednesday's $208.50 an ounce.
Spot silver <XAG=> firmed to $13.66 an ounce from
Wednesday's $13.45 an ounce.
For details on the gold holdings of the ETF listed in New
York and co-listed on other exchanges, click on:
http://www.exchangetradedgold.com/iframes/usa.php
For a graphic, click on:
https://customers.reuters.com/d/graphics/MKTS_SPDRGLD240309.jpg
(Additional reporting by Chikako Mogi in Tokyo, Editing by Sue
Thomas)
