* Aid package for Greece seen within days but doubts persist
* U.S. economy grows slightly less than expected in Q1
* SPDR gold ETF holdings hit record 1,159 T
(Updates prices)
By Jan Harvey
LONDON, April 30 (Reuters) - Gold hit a 2010 high above
$1,180 an ounce in Europe on Friday, fuelled by euro strength
and investors continuing to embrace the metal's safe-haven
properties on unease over euro zone sovereign debt levels.
Spot gold <XAU=> reached a peak of $1,180.90 an ounce and
was bid at $1,178.76 an ounce at 1508 GMT, against $1,166.10
late in New York on Thursday. It also hit a record peak in Swiss
francs <XAUCHF=R> at 1,281.19 francs an ounce.
The precious metal has rallied more than 5 percent so far in
April, its biggest one-month rise since November 2009, as credit
ratings downgrades of Greece, Spain and Portugal unleashed a
wave of risk aversion, channelling money into gold.
Financial markets were settling down slightly, helping the
euro to rally, on hopes that a multi-billion-euro aid package
for Greece would be hammered out within days and prevent the
crisis from spilling over to other countries. []
But the fear of contagion was clearly evident in gold,
analysts said, with prices on track to move back towards their
December high, a record peak of $1,226.10 an ounce.
"Gold has had quite a big move this month," said Nick
Bullman, managing director of Bullman Investment Management.
"The buying has been based on default issues in Europe and other
debasement of currencies."
"I would definitely agree that $1,200 is back on the table,"
he added. "People have been buying it very, very consistently."
U.S. gold futures for June delivery <GCM0> on the COMEX
division of the New York Mercantile Exchange rose $11.4 to
$1,180.20 an ounce.
The euro <EUR=> held on to gains on Friday as hopes of a
quick Greek rescue package spurred investors to cover short
positions. It is on track to lose 2 percent this month, although
it is above this week's one-year low of $1.3114. []
DOLLAR AT LOWER LEVELS
The dollar held steady at lower levels versus the euro after
a government report showed the U.S. economy grew at a slightly
slower-than-expected pace in the first quarter. []
Improving risk appetite lifted other commodities, with oil
rising 0.8 percent. []
The world's largest gold exchange-traded fund, the SPDR Gold
Trust <GLD>, said its holdings hit a record 1,159.002 tonnes as
of April 29, up 6.089 tonnes from the previous day. []
"This week we've seen a strong pick-up in safe-haven demand
(for gold) and big increases in the U.S. SPDR exchange-traded
fund," said James Moore, an analyst at TheBullionDesk.com.
"That is a strong signal that some U.S. investors are very
concerned about the possible implications of the European debt
situation."
Other precious metals, which are more industrial in use than
gold, also recovered some of this week's losses on Friday,
tracking gains in other commodities with industrial exposure.
Silver <XAG=> was at $18.70 an ounce against $18.43,
platinum <XPT=> was at $1,738.50 an ounce versus $1,729 and
palladium <XPD=> was at $548 against $549.50.
"Physical ETP interest was unchanged across platinum, at its
record high at 1.02 million ounces, and silver, close to
November lows at 12,150 tonnes, yesterday, but palladium...
recorded opposing flows," said Barclays Capital in a note.
"Palladium holdings across the five products we track were
down 20,000 ounces to 1.816 million ounces," it said. "The U.S.
palladium ETP continued to grow... to hit a record 694,000
ounces, but the European ETFS product has continued to record
net redemptions."
(Editing by William Hardy)
