* Spot gold eases as dollar recovers losses vs euro
* Sterling-priced gold hits record 753.69 pounds/oz
* Oil rises above $80/bbl, copper climbs on Chile quake
(Releads, updates prices, adds comment)
By Jan Harvey
LONDON, March 1 (Reuters) - Gold eased on Monday as the euro
retreated versus the dollar, but the metal hit record highs in
sterling terms as fears the next UK election could result in a
hung parliament weighed on the British currency.
Spot gold <XAU=> was bid at $1,114.25 an ounce at 1503 GMT,
against $1,116.20 late in New York on Friday. Earlier it rose to
a one-week high of $1,123.30.
Gold priced in sterling <XAUGBP=R> hit a record 753.69
pounds an ounce, meanwhile, as sterling <GBP=> fell in response
to growing UK political uncertainty. []
"The really important lesson to take from this is that when
we look at the headline gold price (in dollars) and think it is
low compared to December, most of that difference is due to the
stronger dollar," said VM Group analyst Matthew Turner.
"If you look from a global perspective, the gold price is
probably near its record highs," he added.
U.S. gold futures for April delivery <GCJ0> on the COMEX
division of the New York Mercantile Exchange eased $5.00 to
$1,114.20 an ounce.
The euro slipped on Monday as a significant sell-off in
sterling spooked currency markets, prompting a knee-jerk drop in
the single European currency versus the dollar.
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.
"The most important driving force for gold is the
euro/dollar," said Wolfgang Wrzesniok-Rossbach, head of sales at
precious metals house Heraeus.
Gold priced in sterling rose to a record high as the British
currency fell after an opinion poll showed a risk that no party
would win an overall majority in the country's next general
election due by June. []
Investors worry a resulting "hung" parliament would be
unable to take action to reduce debt.
FAR FROM HIGHS
"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) had threatened an indefinite strike at its operations in
the country over safety procedures. []
On the supply side, imports into the world's number three
bullion consumer Turkey rose to 310 kilograms in February from
60 kilograms in January, official data showed. []
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. []
Gains in industrial metals after a massive earthquake in
Chile helped silver prices to rise, analysts said. []
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 $16.43 an ounce against
$16.44, platinum <XPT=> was at $1,544 an ounce against $1,540,
and palladium <XPD=> was at $434.50 against $430.
(Editing by James Jukwey)
