* Bullion steadies as dollar recovers losses vs euro
* Oil rises above $80/bbl, copper climbs on Chile quake
* Sterling-priced gold hits record 746.63 pounds/oz
(Releads, updates prices, adds detail)
By Jan Harvey
LONDON, March 1 (Reuters) - Gold retreated from highs in
Europe on Monday to trade little changed from the previous
session as the euro surrendered gains versus the dollar, but
prices were underpinned by strength in other commodities.
Gold priced in sterling <XAUGBP=R> hit a record 746.63
pounds an ounce, meanwhile, as sterling <GBP=> fell in response
to growing UK political uncertainty.
Spot gold <XAU=> was bid at $1,117.00 an ounce at 1118 GMT,
against $1,116.20 late in New York on Friday. Earlier it rose to
a one-week high of $1,123.30.
"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."
U.S. gold futures for April delivery <GCJ0> on the COMEX
division of the New York Mercantile Exchange eased $1.10 to
$1,117.80 an ounce.
The euro retreated versus the dollar on Monday, giving up
earlier gains 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.
STERLING-PRICED GOLD HITS RECORD
Gold priced in sterling rose to a record high 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 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 key supplier 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 $16.55 an ounce against
$16.44, platinum <XPT=> was at $1,549.50 an ounce against
$1,540, and palladium <XPD=> was at $435 against $430.
(Reporting by Jan Harvey; Editing by Amanda Cooper)
