* Gold climbs on Greece uncertainties, defying dollar rise
* Euro falls as cost of insuring Greek default rising
* Palladium falls as traders cash in gains after 2-yr high
(Recasts, adds comments, closing prices, changes byline,
dateline, previously LONDON)
By Frank Tang
NEW YORK, April 15 (Reuters) - Gold climbed toward $1,160
an ounce on Thursday, defying a stronger dollar against the
euro, as lingering worries over Greece's debt crisis boosted
buying of the metal as a hedge against uncertainties.
Bullion's gains in the face of a stronger greenback
indicate that the negative correlation between the metal and
the dollar has lessened as problems in the euro zone prompted
risk-averse investors pile into gold as a safe haven.
"We have a disconnect between gold and the dollar, and that
will continue as long as Greece and the euro zone are still in
the news," said Frank McGhee, head precious metals trader of
Integrated Brokerage Services in Chicago.
Euro zone ministers agreed on Sunday to make available 30
billion euros in loans with a further 15 billion from the
International Monetary Fund. But uncertainty remained over how
the financial assistance would be implemented.
"Until there is a firm resolution, you will continue to see
gold to benefit despite euro's losses."
Spot gold <XAU=> was at $1,158.90 an ounce at 3:07 p.m. EDT
(1907 GMT), against $1,153.90 late in New York on Wednesday.
U.S. gold futures for June delivery <GCM0> settled up 70
cents at $1,160.30 an ounce on the COMEX division of the
NYMEX.
A stronger greenback usually leads to weakness in
dollar-denominated gold as it is more costly to non-U.S.
investors, and the metal is also seen as an alternative global
currency to the U.S. dollar.
Gold priced in euros <XAUEUR=R> was boosted from the single
currency's losses as investors focused on Greece's debt woes,
trading just below a record high.
The euro fell as the cost of insuring against a Greek
default rose, underscoring persistent concerns about Greece's
ability to service its debt. []
Usually this would pressure gold, but the metal has
recently broken its usual positive link to the euro 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."
Wang Tao, a Reuters market analyst, said that further
correction is likely if $1,152 is broken.
A minor wave pattern on the intraday chart indicates a
possible "c" wave developing that is targeting $1,137.51,
subject to a break at $1,144.75, he said.
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For an intraday technical chart on spot gold, click on:
http://link.reuters.com/zub97j
For Reuters' technical analysis, click on []
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PALLADIUM, PLATINUM GROUP RETREAT
Among other precious metals, platinum group metals declined
after Wednesday's sharp rally driven by worries about
production shortfall and optimism about demand from
exchange-traded fund and a global auto recovery.
Palladium <XPD=> fell as traders cashed in gains after the
metal rose on Wednesday to a two-year high at $548.50 an ounce.
It was last at $541.50 on Thursday against $546.
Platinum <XPT=> was at $1,717.50 an ounce against $1,726,
while silver <XAG=> was a penny higher at $18.40 an ounce
versus $18.39, its close late in New York on Wednesday..
Close Change Pct 2009 YTD
Chg Close % Chg
US gold <GCM0> 1160.30 0.7 0.1 1096.20 5.8
US silver <SIK0> 18.433 0.018 0.1 16.845 9.4
US platinum <PLN0> 1726.30 -7.90 -0.5 1471.00 17.4
US palladium <PAM0> 545.90 -2.10 -0.4 408.85 33.5
Prices at 3:33 p.m. EDT (1933 GMT)
Gold <XAU=> 1160.15 6.25 0.5 1096.35 5.8
Silver <XAG=> 18.39 0.00 0.0 16.84 9.2
Platinum <XPT=> 1717.50 -8.50 -0.5 1465.50 17.2
Palladium <XPD=> 541.50 -4.500 -0.8 405.50 33.5
Gold Fix <XAUFIX=> 1154.50 3.25 0.3 1104 4.6
Silver Fix <XAGFIX=> 18.27 -12.00 -0.7 16.99 7.5
Platinum Fix <XPTFIX=> 1718.00 2.00 0.1 1466 17.2
Palladium Fix<XPDFIX=> 542.00 2.00 0.4 402 34.8
(Additional reporting by Jan Harvey in London; Editing by Lisa
Shumaker)
