* Spot gold turns higher as euro bounces up vs dollar
* Sterling-priced gold hits record 753.69 pounds/oz
* Gold priced in non-U.S. currencies near all-time highs
* Coming up: U.S. February auto sales on Tuesday
(Recasts, updates prices, market activity; new byline,
dateline, previously LONDON)
By Frank Tang
NEW YORK, March 1 (Reuters) - Gold finished nearly flat in
quiet trading on Monday, with bullion buyers entering the
market in late trading amid better risk appetite as the euro
bounced off session lows against the dollar.
Gold hit record highs in sterling terms as fears the next
U.K. election could result in a hung parliament weighed on the
British currency.
Gold started March with gains after rising about 2 percent
in February, amid fiscal fears about Greece and some European
countries that also boosted the greenback.
COMEX floor trader Jonathan Jossen said gold options were
becoming more volatile, indicating a significant move in the
underlying futures could be near.
"In face of weak euro and strong dollar, there is
definitely a commitment to gold by the trade," Jossen said.
Spot gold <XAU=> was at $1,118.75 an ounce at 3:24 p.m. EST
(2024 GMT), up slightly from $1,116.20 late in New York on
Friday. Earlier, it rose to a one-week high of $1,123.30.
U.S. gold futures for April delivery <GCJ0> on the COMEX
division of the New York Mercantile Exchange settled down 60
cents at $1,118.30 an ounce.
Gold priced in sterling <XAUGBP=R> hit a record 753.69
pounds an ounce, 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 "hung" parliament would be unable to take
action to reduce debt.
"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.
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. []
A weak dollar boosts the appeal of gold as an alternative
asset and makes dollar-priced commodities cheaper for holders
of other currencies.
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.
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. []
Gold also benefited during the session from strength in
equities and other commodities. Oil prices rose as high as
above $80.62 a barrel before turning lower.
Gains in industrial metals after a massive earthquake in
Chile helped silver prices to rise, analysts said. []
Spot silver <XAG=> was at $16.41 an ounce against $16.44,
platinum <XPT=> was at $1,543 an ounce against $1,540, and
palladium <XPD=> was at $433.50 against $430.
Close Change Pct 2009 YTD
Chg Close % Chg
US gold <GCJ0> 1118.30 -0.6 -0.1 1096.20 2.0
US silver <SIK0> 16.469 -0.052 -0.3 16.845 -2.2
US platinum <PLJ0> 1544.00 4.10 0.3 1471.00 5.0
US palladium <PAM0> 438.00 4.25 1.0 408.85 7.1
Prices at 3:20 p.m. EST (2020 GMT)
Gold <XAU=> 1118.45 2.25 0.2 1096.35 2.0
Silver <XAG=> 16.42 -0.02 -0.1 16.84 -2.5
Platinum <XPT=> 1543.50 3.50 0.2 1465.50 5.3
Palladium <XPD=> 433.00 3.000 0.7 405.50 6.8
Gold Fix <XAUFIX=> 1114.00 -3.25 -0.3 1104 0.9
Silver Fix <XAGFIX=> 16.50 38.00 2.4 16.99 -2.9
Platinum Fix <XPTFIX=> 1548.00 6.00 0.4 1466 5.6
Palladium Fix<XPDFIX=> 437.00 1.00 0.2 402 8.7
(Additional reporting by Jan Harvey in London)
