* Gold ends week up $20 on Greece, currency volatility
* Smaller-than-expected US job losses boost sentiment
* Palladium prices hit highest since June 2008
* Coming up: Greek debt crisis, euro in focus
(Recasts, updates prices, previous dateline LONDON)
By Frank Tang
NEW YORK, March 5 (Reuters) - Gold rose toward $1,140 an
ounce on Friday, ending the week about $20 higher as a
sovereign debt crisis in Greece spurred buying of the metal as
a hedge against currency volatility.
Palladium rose to its highest in more than two years,
boosted by optimism about global autocatalyst demand and
possible near-term tightness in the physical markets, analysts
said.
Gold's ability to post gains in the face of a firm dollar
indicated the inverse relationship between the greenback and
the metal could further weaken, said Tom Hartmann, analyst at
California-based broker-dealer Altavest.
"With everything that is going on in Europe, people are
losing trust in different types of paper currencies," and that
should benefit gold, Hartmann said.
Gold has traditionally been used as a safe haven in times
of economic and political uncertainty, as the metal's intrinsic
value is not dependent on any fiat currency.
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Technicals bearish on gold in long term
http://link.reuters.com/qef43j
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Spot gold <XAU=> was at $1,132.85 an ounce at 2:27 p.m. EST
(1927 GMT), against $1,131.45 late in New York on Thursday.
U.S. gold futures for April delivery <GCJ0> on the COMEX
division of the NYMEX settled up $2.10 at $1,135.20 an ounce.
The February non-farm payrolls report showed that U.S.
employers cut fewer jobs than expected during the month, and
the unemployment rate held steady at 9.7 percent, bolstering
views the economy was on the brink of creating jobs.
The dollar initially rallied on the news due to economic
optimism, but the euro <EUR=> later rebounded, supporting
gold.
Concern over the fiscal health of peripheral euro zone
economies such as Greece, Italy and Spain have weighed heavily
on the euro this year. It is currently down nearly 5 percent
versus the dollar in 2010.
Uncertainty over what the next British election may mean
for U.K. debt has also heightened volatility in the European
currencies, lifting interest in gold as an alternative asset.
Gold priced in euro <XAUEUR=R> and sterling <XAUGBP=R>
terms are hovering near record highs reached earlier this
week.
"The shift in sovereign risk away from Greece on Friday has
helped support gold, and risk appetite is higher because of the
better-than-expected job number," said James Steel, chief
commodities analyst at HSBC.
A Wall Street rally and oil's sharp gains amid better
economic sentiment also boosted gold's inflation hedge appeal.
PALLADIUM HITS HIGHEST SINCE 2008
Among other precious metals, palladium <XPD=> hit a high of
$475.50, the loftiest level since June 2008. It was last at
$475 against $458.50.
"The market is very enthusiastic about the prospect of
gasoline-driven vehicles, and there is some near-term physical
tightness, which is supporting the market," Steel said.
Platinum group metals are used in catalytic converters to
clean auto exhaust fumes. Gasoline-powered vehicles use a
greater percentage of palladium and less platinum than diesel
engines, which require more platinum and less palladium.
Steady increase in the holdings of U.S. palladium and
platinum exchange-traded funds also underscored strong
investment demand. As of Thursday, ETFS physical palladium
<PALL.P> shares held about 470,000 ounces, and ETFS physical
platinum <PPLT.P> had about 270,000 ounces.
Palladium has outperformed other precious metals this year,
rising 17 percent compared with a 7.5 percent rise for
platinum, 3.3 percent for gold and 2.7 percent for silver.
Silver <XAG=> was at $17.30 an ounce against $17.10,
tracking gains in gold. Platinum <XPT=> was at $1,574.50 an
ounce against $1,576.50.
Close Change Pct 2009 YTD
Chg Close % Chg
US gold <GCJ0> 1135.20 2.1 0.2 1096.20 3.6
US silver <SIK0> 17.382 0.206 1.2 16.845 3.2
US platinum <PLJ0> 1579.10 -4.50 -0.3 1471.00 7.3
US palladium <PAM0> 476.70 13.50 2.9 408.85 16.6
Prices at 3:32 p.m. EST (2032 GMT)
Gold <XAU=> 1132.25 0.80 0.1 1096.35 3.3
Silver <XAG=> 17.31 0.21 1.2 16.84 2.8
Platinum <XPT=> 1574.50 -2.00 -0.1 1465.50 7.4
Palladium <XPD=> 474.50 16.000 3.5 405.50 17.0
Gold Fix <XAUFIX=> 1135.00 0.00 0.0 1104 2.8
Silver Fix <XAGFIX=> 17.25 -9.00 -0.5 16.99 1.5
Platinum Fix <XPTFIX=> 1578.00 1.00 0.1 1466 7.6
Palladium Fix<XPDFIX=> 466.00 1.00 0.2 402 15.9
(Additional reporting by Jan Harvey in London; Editing by Lisa
Shumaker)
