* Euro recovers losses vs dollar as officials meet on Greece
* Oil rises above $80/bbl, copper climbs on Chile quake
* Sterling-priced gold hits record 741.19 pounds/oz
(Updates, adds comment, changes dateline from SINGAPORE)
By Jan Harvey
LONDON, March 1 (Reuters) - Gold prices rose in Europe on
Monday as the euro recovered early losses to firm versus the
dollar, with the yellow metal also benefiting from strength in
other commodities such as oil and copper.
Silver meanwhile climbed to its highest since early February
at $16.73 an ounce, lifted by gains in industrial metals.
Spot gold <XAU=> was bid at $1,120.40 an ounce at 0952 GMT,
against $1,116.20 late in New York on Friday. U.S. gold futures
for April delivery <GCJ0> on the COMEX division of the New York
Mercantile Exchange rose $2.20 to $1,121.30 an ounce.
"There is a combination of factors here," said Wolfgang
Wrzesniok-Rossbach, head of sales at precious metals house
Heraeus. "The most important driving force for gold is the
euro/dollar...and we also have relatively strong oil prices.
"There is some physical demand around, and also the financial
situation in the Mediterranean, in Greece and elsewhere, is
still open. People don't know what is going to happen, so they
are buying gold as a safe haven."
The euro turned higher versus the dollar on Monday,
recovering early losses, as signs emerged that a support deal
for Greece may be near. Fears over the country's fiscal health
have kept the pressure on the single currency this year. []
European Central Bank Executive Board member Juergen Stark
was in Athens on Monday with the European Union's Economic
Affairs Commissioner Olli Rehn to meet Greek officials on the
country's fiscal crisis. []
Gold is heavily influenced by moves in the dollar, with
weakness in the U.S. unit boosting its appeal as an alternative
asset and making dollar-priced commodities cheaper for holders
of other currencies.
Foreign exchange traders will be eyeing key U.S. data due
later in the day, including January personal spending numbers
and the Institute for Supply Management's manufacturing index
for February, for its possible impact on currencies. []
STERLING-PRICED GOLD HITS RECORD
Gold priced in sterling <XAUGBP=R> rose to a record 741.19
pounds an ounce as the British currency fell after an opinion
poll showed a risk that no party will win an overall majority in
the country's next general election in June. []
"Gold is far from its highs in U.S. dollar terms made back
in early December of last year, but is at those highs in
sterling terms, and is putting those highs to test in euro and
Swiss franc terms," said Dennis Gartman, editor of the Gartman
Letter trading note.
"Had one been long of gold in dollar terms from the highs in
December one would still be "down" 8.5 percent, but in terms of
European currencies one would be essentially unchanged."
In supply news, Gold Fields <GFIJ.J>, the world's No.4 gold
producer, said South Africa's National Union of Mineworkers
(NUM) has threatened an indefinite strike at its operations in
the country over safety procedures. []
Gold also benefited from strength in other commodities.
Oil prices rose more than 1 percent to above $80 a barrel as
threats Iran may cut off energy supplies to Europe fuelled
buying, while copper rose nearly 5 percent to its highest since
January after a massive earthquake hit Chile. [] []
The gains in industrial metals helped silver prices to rise,
analysts said. "Silver opened around 20-cents higher in Asia
this morning as a result of the Chile related copper gains,"
said James Moore, an analyst at TheBullionDesk.com, in a note.
Holdings of the world's largest silver exchange-traded fund,
the iShares Silver Trust <SLV>, rose 30.51 tonnes on Friday to
9,476.91 tonnes, the trust said. []
Spot silver <XAG=> was bid at $16.61 an ounce against
$16.44, platinum <XPT=> was at $1,552.50 an ounce against
$1,540, and palladium <XPD=> was at $436.50 against $430.
(Reporting by Jan Harvey; Editing by Keiron Henderson)
