* Gold market watching Greece, ETFs
* Supply concern pushes platinum to highest since January
* Coming up: US wholesale inventories, factory orders 1400
GMT
(Recasts, adds details, updates prices)
By Pratima Desai
LONDON, March 31 (Reuters) - Gold hit its highest in more
than a week on Wednesday as the dollar slipped against major
currencies and longer-term fears over sovereign debt put a floor
under prices.
Platinum <XPT=> jumped to $1,646.50 an ounce, its highest
since Jan. 20 on worries about supplies from South Africa, the
world's largest producer of the metal used to make autocatalysts
that clean car emissions.
Spot gold <XAU=> was at $1,117.85 a troy ounce at 1326 GMT
from $1,102.50 an ounce late in New York on Tuesday, having
earlier hit $1,117.90, its highest since March 19.
The dollar fell against the euro and retreated from a
three-month high against the yen on Wednesday after data showed
the United States shed private sector jobs this month, stoking
concern about the economy.
ADP Employer Services said the economy lost 23,000
private-sector jobs in March, confounding economists polled by
Reuters who had expected a 40,000 job gain. For more, see
[]
A weaker dollar makes dollar-priced gold cheaper for
non-U.S. investors and tends to improve the precious metal's
appeal as an alternative to the U.S. currency.
"The ADP report came in weaker than expected, pushing the
dollar down and gold higher. Fundamentals are bullish for gold,
there's inflation concerns, Asian central bank buying, huge debt
in the OECD," said Societe Generale analyst Jesper Dannesboe.
"The reason we're not trending higher is because the
speculative part of the market has overbought long positions. We
need some time for these positions to be reduced."
While heading for its sixth consecutive quarter of gains,
gold was still about 10 percent below a record high around
$1,226 struck in December and hovered below the 100-day moving
average.
The market was also watching Greece, which with its fiscal
problems has dragged the euro <EUR=> down against the dollar in
recent months. []
That has weighed on gold short term, but uncertainty about
finances in euro zone countries is a strong support overall.
Earlier, Moody's Investors Service downgraded five banks in
Greece on weakened financial strength as the country struggles
with its deficit. []
"We view the upside risk as dominant today, supported by
indications that Greece is starting to fail in raising money
through bond issues," SEB said in a note.
For a graphic on first quarter price performances, click on
http://graphics.thomsonreuters.com/310/CMD_Q1PRF0310.gif
NO. 1 FURNACE
U.S. gold futures for June delivery <GCM0> gained $8.40 to
$1,112.90 an ounce after falling on Tuesday due to month-end
position squaring and contract rollover.
The world's largest gold-backed exchange-traded fund, SPDR
Gold Trust <GLD>, said its holdings stood at 1,129.823 tonnes as
of March 30, unchanged from the previous day, about 5 tonnes
below a record high of 1,134.03 tonnes on June 1, 2009.
[]
"Gold for the moment continues to consolidate with good
volumes of physical and investment demand providing support,"
said TheBullionDesk.com in a note.
"However, the metal remains capped by overhead mid-term
downtrend resistance and the 100-day moving average at $1,120,
with another stalled rally potentially triggering a re-test of
the $1,085 level."
A break of $1,120 is possible, but it needs a strong
trigger, one trader said, adding trading was subdued ahead of
some key jobs data from the United States on Friday, which could
help determine the future direction of the dollar.
"Platinum has had a good run today due to Lonmin," the
traders said.
The world's third-largest platinum producer, Lonmin <LMI.L>,
said it had shut its No. 1 furnace after another incident at the
smelter, with repairs expected to take over a month.
The No.1 furnace, rebuilt last year, has a history of
problems and has often forced the firm to cut sales guidance.
Lonmin said no one was hurt in Tuesday's incident and that
its initial estimate was that a full repair would take around
30-40 days. The firm is aiming for 2010 platinum sales of
700,000 ounces. []
Spot platinum was at $1,644.50 an ounce from $1,616.50 on
Tuesday, palladium <XPD=> at $477.00 from $466.50 and silver
<XAG=> at $17.55 from $17.25, having earlier hit $17,59, its
highest since March 10.
(Additional reporting by Maytaal Angel; Editing by Sue Thomas)
