* Euro comes under fresh pressure from fears over Greece
* Underlying safe-haven demand still supporting prices
* Silver ETF records outflow; holdings down 3.4 pct in April
(Updates prices)
By Jan Harvey
LONDON, April 16 (Reuters) - Gold eased in Europe on Friday,
pressured by dollar strength as concern over Greece's ability to
service its debts weighed on the euro, though underlying demand
for the metal as a portfolio diversifier supported prices.
Spot gold <XAU=> was bid at $1,154.65 an ounce at 1045 GMT,
against $1,157.95 late in New York on Thursday. U.S. gold
futures for June delivery <GCM0> on the COMEX division of the
New York Mercantile Exchange fell $4.60 to $1,155.70 an ounce.
The metal was tightly traded for much of the previous
session but swung to a session high of $1,161.30 as U.S. trade
got under way and investors sought out gold as a safe store of
value amid lingering fears over Greece.
"In European trade it has been the currencies, and in the
U.S. more the speculative buying, expectations for safe haven
demand and uncertainty over Greece that are driving gold," said
Peter Fertig, a consultant at Quantitative Commodity Research.
"It is when the U.S. market opens that gold is rising."
He said he expects data to show a rise in net long positions
in U.S. gold futures this week.
"This is driving gold despite the sometimes weaker euro
against the U.S. dollar," he said. "The safe-haven buying and
speculative expectation there will be such buying is leading to
the rather stable and higher gold prices."
U.S. investment demand for gold has been firm in recent
weeks, with holdings of the world's largest gold-backed
exchange-traded fund, New York's SPDR Gold Trust <GLD>, steady
at record levels on Thursday. []
Gold came under pressure from dollar strength on Friday as
the U.S. unit firmed versus the euro. Analysts said sovereign
debt issues in the euro zone coupled with a lack of growth were
undermining confidence in the single currency. []
Strength in the dollar curbs gold's appeal as an alternative
asset and makes dollar-priced commodities more expensive for
holders of other currencies.
German Finance Minister Wolfgang Schaeuble said in a radio
interview on Friday that debt-laden Greece is on the right path
to work out its financial woes, and will likely not need to
activate an emergency aid mechanism. []
OIL RETREATS
Oil prices, often another key driver of the gold market,
fell nearly $1 a barrel on Friday to below $85, pressured by
dollar strength and concerns over U.S. demand. []
From a chart perspective, gold prices are looking relatively
firm, though a further pullback is on the cards after the metal
hit four-month highs earlier this month, analysts said.
"While unwinding its recent overbought momentum readings on
daily charts, bullish sentiment for gold is increasing," said
Barclays Capital in a note.
"However, (it) has yet to close above its January
peak/resistance at $1,162/66, and such a close would confirm a
resumption of the uptrend to $1,187. In the near term, we are
neutral within the $1,143-1,162 range and expect further gains
to $1,188 later this month."
For Reuters' technical analysis, click on []
Among other precious metals, silver <XAG=> was at $18.30 an
ounce against $18.37.
The world's largest silver ETF, the iShares Silver Trust
<SLV>, said its holdings fell 67.1 tonnes from the day before to
8,958.68 tonnes on Apr. 15. Its holdings have fallen 319.5
tonnes or 3.4 percent so far this month. []
Platinum <XPT=> was at $1,714.50 an ounce against $1,717.50,
while palladium <XPD=> was at $539.50 against $542.
(Editing by Sue Thomas)
