* Euro steadies off early lows; market awaits news on Greece
* India rate hike continues to weigh on market
* Coming up: EU summit meeting, March 25-26
(Updates prices)
By Jan Harvey
LONDON, March 22 (Reuters) - Gold prices edged lower in
Europe on Monday as the euro retreated, but were set to remain
in a relatively narrow range as traders awaited the outcome of
talks on a bail-out of debt-laden Greece.
Spot gold <XAU=> was bid at $1,103.10 an ounce at 1133 GMT,
against $1,106.55 late in New York on Friday. U.S. gold futures
for April delivery <GCJ0> on the COMEX division of the New York
Mercantile Exchange eased $4.30 to $1,103.30 an ounce.
Concern over Greece's fiscal health resurfaced at the
weekend ahead of a European Union summit later this week.
Sovereign debt fears are having a conflicting impact on gold,
keeping it rangebound.
"It is maintaining safe-haven demand for gold on one hand,
but leading to EUR/USD -- and hence gold -- weakness on the
other," said Citigroup analyst David Thurtell. He said the net
result was little movement in the gold price.
India's surprise 25 basis-point interest rise on Friday also
weighed on prices and sparked speculation other countries may
follow suit.
Low interest rates, which cut the opportunity cost of
holding gold, have been a major support to prices in the last
year.
The euro fell to a three-week low against the dollar on
Monday, pressured by uncertainty about whether Greece would be
able to secure aid this week to help service its ballooning
debts. []
European leaders sent out conflicting signals at the weekend
over aid to Greece, with Germany's Angela Merkel urging Athens
to solve its debt problems alone and Italy's Silvio Berlusconi
strongly backing EU support. []
"There is still plenty of confusion about a bail-out for
Greece," said Credit Agricole in a note. "Merkel dampened
expectations of a bailout by stating that it was not even on the
agenda for the summit."
"In contrast, EU President Barroso has pushed EU members to
agree on an explicit stand-by aid agreement for Greece as soon
as possible."
"All of this suggests more downside for EUR/USD, with a test
of support around $1.3422 looming," it added.
OIL SLIPS TOWARDS $80/BBL
Among other commodities, oil prices fell below $80 a barrel
as nagging worries over Greece's debt and the surprise interest
rate hike by India at the end of last week stoked concern over
demand. []
European shares extended losses on Monday morning, led lower
by banks and commodity stocks as investors fretted over further
monetary tightening in emerging markets. []
Among other precious metals, silver <XAG=> was bid at
$16.82 an ounce against $16.93, platinum <XPT=> was at $1,580.50
an ounce against $1,604.50, while palladium <XPD=> was the
biggest faller, slipping to $455 against $467.
Both platinum and palladium are consolidating after posting
hefty gains at the beginning of the month after car sales data
from the key U.S. and Chinese markets cheered investors. The
metals are primarily used in autocatalysts.
"As long as the Chinese automobile market is in a boom and
American sales continue to grow, a change in palladium's trend
is not to be expected, more so when industrial demand
is supported by investor interest," said precious metals house
Heraeus in a note.
"Though...we do not see a price sustained above $500 an
ounce, we continue to recommend to industrial end-users to buy
the larger dips."
(Editing by Sue Thomas)
