* Aid deal for Greece continues to dent the dollar
* China gold demand to double over next decade - WGC
* Coming Up: Monthly U.S. payrolls data, due Friday
(Updates prices, adds details)
By Maytaal Angel
LONDON, March 29 (Reuters) - Gold hit its highest in more
than a week on Monday, buoyed by dollar weakness following last
week's euro zone agreement on emergency financial aid for
Greece.
Spot gold <XAU=> rose as high as $1,114.45 an ounce, its
strongest level since March 19.
At 1624 GMT, it traded at $1,109.95 versus $1,105.10 late in
New York on Friday, when it rose more than 1 percent to regain
the psychological level of $1,100.
U.S. gold futures for April delivery <GCJ0> added $7.7 to
$1,112.00 an ounce.
"The market thinks this Greek problem has been solved. We
saw excellent physical demand last week and it's continuing. If
we can get our heads above $1,115 area we should see further
short covering," said Afshin Nabavi, head of trading at MKS
Finance.
The euro rose on Monday, boosted by last week's euro zone
agreement on emergency financial aid for debt-laden Greece, but
came off a session high as investors gleaned little comfort from
the outcome of the country's seven-year bond sale. []
The sale drew significantly less demand than two previous
heavily oversubscribed Greek 10-year issues. []
A weaker dollar tends to boost gold's appeal as an
alternative asset to the U.S. currency. It also makes
dollar-priced gold cheaper for non-U.S. investors.
"Gold is attracting money in its own right as a currency.
Gold is still an alternative to currencies, which is helping to
keep prices buoyant," said Simon Weeks, head of precious metals
at the Bank of Nova Scotia.
CHINA GOLD DEMAND TO DOUBLE
China's gold demand will double over the next decade from
current levels due to jewellery consumption and investment
needs, the World Gold Council said on Monday in its first report
on the world's fastest growing gold user. []
"Physical demand has been excellent. There's certainly been
a lot of demand from China ... you've got the wedding season
coming up in April, people are looking at that," said Weeks.
Gold, seen as a safe haven asset, also gleaned support from
news that two blasts had ripped through packed Moscow metro
stations on Monday, killing at least 34 people and wounding 18.
[]
Investors were awaiting monthly U.S. payrolls data on Friday
for further clues on the outlook for the dollar and for gold.
Analysts expect U.S. employers added 190,000 jobs in March,
the second month of jobs growth. Earlier, U.S. data showed
consumer spending, which is impacted by the jobs market, rose as
expected in February. [] []
In other precious metals, silver <XAG=> was at $17.34 an
ounce versus $16.85 at New York's notional close on Friday,
having earlier hit $17.40, its highest in more than a week.
Platinum <XPT=> was at $1,616.00 versus $1,594.00, having
earlier hit its highest since March 19 at $1,619.00, while
palladium <XPD=> was at $471 versus $455.50, having earlier hit
$474.50, its highest since March 19.
"Palladium is holding up much better. We have seen very good
buying on approach of $440. We believe that palladium will
outperform platinum," Standard Bank analyst Walter de Wet said
in a note.
(Editing by Veronica Brown and James Jukwey)
