* Gold prices hit record highs in euro terms
* Trichet sees euro zone growth moderate, uneven
* Platinum, palladium succumb to profit taking after highs
(Updates prices, adds comment, detail)
By Jan Harvey
LONDON, April 8 (Reuters) - Gold rose back above $1,150 an
ounce on Thursday as concerns over the fiscal health of the euro
zone boosted interest in the metal as a haven from risk, while
euro-priced bullion hit a record high.
Spot gold <XAU=> hit a session high at $1,151.15 an ounce
and was bid at 1,150.05 an ounce at 1250 GMT, against $1,147.00
late in New York on Wednesday. Euro-priced <XAUEUR=R> gold rose
to a record 864.75 an ounce.
Prices have climbed more than 2 percent so far this week
despite strength in the dollar, as persistent fears over the
fiscal health of smaller euro zone economies prompted investors
to buy the metal as a haven from financial risk.
"Currently we notice a clear de-coupling of the inverse
correlation between the dollar and gold, and this seems to be on
the back of the current chaos in euro zone," said Pradeep Unni,
senior analyst at Richcomm Global Services.
"Problems in Greece and therefore the euro zone aren't close
to over and if the IMF package is renegotiated... the currency
would face further selling pressure. Investors currently seem to
be offloading the risk of this... in gold and the dollar."
U.S. gold futures for June delivery <GCM0> on the COMEX
division of the New York Mercantile Exchange eased $1.80 to
$1,151.00.
Gold extended gains after European Central Bank president
Jean-Claude Trichet said euro zone economic recovery would be no
better than moderate and uneven this year, speaking at a news
conference after the ECB opted to keep interest rates on hold.
[]
The euro fell on Thursday, approaching this year's low
against the dollar, on concerns about Greece's precarious fiscal
health. []
Buying driven by fears over the euro zone's fiscal issues
has so far counteracted euro weakness, which would normally have
been a powerful downward force on gold. However, persistent
dollar strength may weigh on gold in future, analysts said.
"The dollar will come back into the picture, and the dollar
is looking better than ever," said Andrey Kryuchenkov, an
analyst at VTB Capital.
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For a graphic showing gold's correlation with the euro-dollar
exchange rate, click on:
http://graphics.thomsonreuters.com/gfx/SBrb_20100804120229.jpg
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OIL DECLINES
Among other commodities, oil declined for a second day on
Thursday towards $85 a barrel, pressured by a stronger dollar
and a rise in U.S. crude stockpiles to their highest level in
nearly 10 months. []
On the investment side of the gold market, the world's
largest gold exchange-traded fund, New York's SPDR Gold Trust
<GLD>, said its holdings rose 0.914 tonnes on Wednesday to
1,130.737 tonnes, their highest since December. []
On the supply side, South Africa, a major producer of the
precious metal, said its output fell 9.2 percent in volume terms
in February compared to the same month of the previous year.
[]
Among other precious metals, platinum and palladium prices
retreated after hitting their highest in 20 months and two years
respectively in the last session, as investors cashed in gains.
"We expect both to remain underpinned by increasing
investment and industrial demand and look to target $1,750/$525
in the coming sessions," said James Moore, an analyst at
TheBullionDesk.com.
Platinum <XPT=> was at $1,699 an ounce against $1,700.50,
while palladium <XPD=> was at $499.50 against $506. Silver
<XAG=> was bid at $17.99 an ounce against $18.11.
(Reporting by Jan Harvey; Editing by Keiron Henderson)
