* Aid deal for Greece dents dollar, boosts risk appetite
* Silver, platinum group metals rise on economic optimism
* China gold demand to double over next decade - WGC
* Coming Up: U.S. non-farm payrolls data on Friday
(Updates prices, adds details)
By Frank Tang
NEW YORK, March 29 (Reuters) - Gold hit its highest in more
than a week on Monday as risk appetite increased, while silver
and platinum group metals also rose sharply as economic
optimism boosted demand for industrial commodities.
Palladium, which has had the best performance among
precious metals year-to-date, was lifted by heavy buying as
investors covered short positions after the price had dropped
about $30 last week.
Dollar weakness against the euro amid easing concerns about
Greece and better physical demand from India led to buying in
gold and other precious metals, said Peter Buchanan, senior
economist of CIBC World Markets.
"Stronger-than-expected economic data in China and Europe
reduces risk aversion, helping the euro and gold and other
commodities," he said.
Palladium, platinum and silver, widely used as industrial
metals, rallied after a report said that China's annual
economic growth will reach 12 percent this quarter following
strong industrial output growth last month. []
Spot gold <XAU=> was at $1,108.45 an ounce at 3:01 p.m. EDT
(1901 GMT), versus $1,105.10 late in New York on Friday.
Earlier in the session, bullion reached a high of $1,114.45 an
ounce, the loftiest level
U.S. April gold futures <GCJ0> settled up $6 at $1,110.30
an ounce on the COMEX division of the NYMEX.
The euro strengthened as debt-stricken Greece sold
seven-year bonds, and gold's safe-haven appeal also increased
as investors remained anxious about the country's long-term
fiscal health. []
"The market thinks this Greek problem has been solved. We
saw excellent physical demand last week and it's continuing,"
said Afshin Nabavi, head of trading at MKS Finance.
Higher-than-expected gains in German inflation also
suggested decent pick-up in growth in the euro zone.
[]
"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, GLD POSITIVE
Positive investment demand amid gains in the equities
market also triggered inflow into the world's biggest
gold-backed exchange traded funds.
Month to date, holdings in SPDR Gold Trust <GLD>, commonly
called by its ticker symbol GLD, has gained about 18 tonnes, or
nearly 2 percent to 1,124.65 tonnes.
James Ross, senior managing director at State Street Global
Advisors, which runs GLD, said that new allocation and investor
overweighing due to concerns about the dollar and inflation
have been benefiting the ETF.
In the physical sector, the World Gold Council said in its
first report on China, the world's fastest growing gold user,
that gold demand will double over the next decade from current
levels due to jewelry consumption and investment needs.
[]
In other precious metals, palladium <XPD=> was at $470.50
versus $455.50, having earlier hit $474.50, its highest since
March 19, and platinum <XPT=> was at $1,625.50 versus
$1,594.00.
Year to date, palladium was up 16 percent, while platinum
was up 11 percent.
Silver <XAG=> was at $17.35 an ounce versus $16.85 at New
York's notional close on Friday.
Close Change Pct 2009 YTD
Chg Close % Chg
US gold <GCJ0> 1110.30 6 0.5 1096.20 1.3
US silver <SIK0> 17.387 0.481 2.8 16.845 3.2
US platinum <PLJ0> 1627.90 31.90 2.0 1471.00 10.7
US palladium <PAM0> 475.00 19.70 4.3 408.85 16.2
Prices at 4:16 p.m. EDT (2016 GMT)
Gold <XAU=> 1110.15 5.05 0.5 1096.35 1.3
Silver <XAG=> 17.36 0.51 3.0 16.84 3.1
Platinum <XPT=> 1625.50 31.50 2.0 1465.50 10.9
Palladium <XPD=> 470.50 15.000 3.3 405.50 16.0
Gold Fix <XAUFIX=> 1107.50 -3.75 -0.3 1104 0.3
Silver Fix <XAGFIX=> 17.15 30.00 1.8 16.99 0.9
Platinum Fix <XPTFIX=> 1611.00 1.00 0.1 1466 9.9
Palladium Fix<XPDFIX=> 473.00 12.00 2.6 402 17.7
(Additional reporting by Maytaal Angel in London, Editing by
Rene Pastor)
