* Dollar rises as lingering fears over Greece pressure euro
* Chart support holds firm for gold above $1,150/oz
* Palladium falls as traders cash in gains after 2-yr high
(Updates prices, adds comment, detail)
By Jan Harvey
LONDON, April 15 (Reuters) - Gold firmed on Thursday as
worries over Greek debt levels pulled some safe-haven flows back
into the market and as technical support above $1,150 an ounce
proved strong, though dollar strength limited its gains.
Gold priced in euros benefitted from the single currency's
losses as Greece's debt woes moved into sharp focus, lifting
demand for the precious metal a safe store of value. []
Spot gold <XAU=> was bid at $1,159.15 an ounce at 1514 GMT,
against $1,153.90 late in New York on Wednesday. U.S. gold
futures for June delivery <GCM0> on the COMEX division of the
New York Mercantile Exchange rose 50 cents to $1,160.10.
The euro fell as the cost of insuring against a Greek
default rose, fuelling fears over how Greece will service its
debt. Usually this would pressure gold, but the metal has
sometimes broken its usual link to currencies this year as debt
fears rise. []
"Greece is an ongoing story, it can't be resolved that
quickly. There have to be concerns there," said Credit Agricole
analyst Robin Bhar. "That is going to be a reason to hold gold,
so there are some positives."
Investors are demanding a higher premium on Greek debt as
uncertainties remain over an aid package agreed by euro zone
finance ministers last weekend to help the debt-laden country
service its mounting financial burden.
Gold is also being underpinned by strong technical support,
traders said, after prices hit four-month highs at $1,168.70 at
the beginning of this week, when a combination of safe-haven
buying and dollar weakness swept prices higher.
"We saw the upward move last week in gold and... it seems
the market is happy with the levels we are seeing," said
Deutsche Bank trader Michael Blumenroth. "There is still some
demand for gold for safe-haven purposes."
"We should find good support at $1,140-1,150. That has been
established as the downside as we take a breather and get some
strength for the next upward move. I think $1,180 will be the
target next week, and ahead of May."
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PHYSICAL DEMAND EASES
Physical gold demand eased on Thursday as high prices put
off buyers in key consumer India. Holdings of the world's
largest gold exchange-traded fund, the SPDR Gold Trust <GLD>,
held at a record 1,141.041 tonnes on Wednesday. []
Among other precious metals, silver <XAG=> rose in line with
gold, and was bid at $18.44 an ounce against $18.39.
Platinum group metals declined, however, with palladium
dropping as traders cashed in gains after the metal rose on
Wednesday to a two-year high at $548.50 an ounce, lifted by
expectations demand from carmakers will rise this year.
Technical analysts at Barclays Capital, who study past price
moves for indications of the future direction of trade, said the
outlook still looked good for palladium.
"Having tripled in value and after fifteen consecutive
bullish months, the uptrend in palladium is accelerating
relentlessly and is on course to retest the 2008 peak at $595,"
they said in a note.
Platinum <XPT=> was at $1,721 an ounce against $1,726, while
palladium <XPD=> was at $544.50 against $546.
Minor precious metal rhodium <RHOD-LON>, which like platinum
and palladium is primarily used as a component in catalytic
converters, also rose to 18-month highs at $2,925 an ounce,
while ruthenium hit a 17-month peak at $195 an ounce.
Electronics material iridium <IRID-LON> also climbed to its
highest in 12 years at $525 an ounce.
(Reporting by Jan Harvey; Editing by Amanda Cooper)
