* Gold prices hit record highs in euro terms
* Trichet sees euro zone growth moderate, uneven
* Palladium succumbs to profit taking after 2-year high
(Updates prices, adds comment)
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, with a
recovery in the euro relieving downward pressure on the metal.
Spot prices climbed back to within 10 cents of Wednesday's
near three-month high, while euro-priced gold hit record levels.
Spot gold <XAU=> hit a peak of $1,152.65 an ounce and was
bid at $1,150.15 an ounce at 1503 GMT, against $1,147.00 late in
New York on Wednesday. Euro-priced <XAUEUR=R> gold reached a
record 864.75 an ounce.
Prices have climbed nearly 3 percent so far this week
despite overall 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 $1.30 to
$1,151.70.
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 recovered after earlier approaching this year's
lows against the dollar on concerns about Greece's precarious
fiscal health, after Trichet said Greece was not in danger of
defaulting on its debt. []
Buying driven by fears over the euro zone's fiscal issues
offset the euro's weakness earlier this week, which would
normally have been a powerful downward force on gold.
Its recovery has helped prices rise further.
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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 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. []
Platinum prices firmed a touch but remained off the 20-month
high they hit in the last session. Platinum <XPT=> was at
$1,708.50 an ounce against $1,700.50.
Palladium <XPD=> eased to $498.50 against $506, well off the
two-year high it hit on Wednesday, but traders say the outlook
for the autocatalyst material remains strong.
"Any upward trend is marked by phases of weaknesses and
dips, and we remain of the opinion that industrial end users
should use such dips to cover (some of) their future demand,"
precious metals house Heraeus said in a weekly report.
"Here for now one should not speculate on large drops, as at
$470, $440 and then again at $410 an ounce there is strong
technical support."
Silver <XAG=> was bid at $18.07 an ounce against $18.11
(Editing by Sue Thomas)
