* Risk aversion softens, lifting stocks, but gold holds firm
* Euro-dollar holds broadly unchanged, oil prices steady
* Ratio of gold to silver, platinum hits highest since June
(Updates prices)
By Jan Harvey
LONDON, Aug 23 (Reuters) - Gold prices held steady near
$1,230 an ounce in Europe on Monday as uncertainty over the
outlook for the global economy continued to support investment
in the precious metal as a safe store of value.
Spot gold <XAU=> was bid at $1,226.25 an ounce at 1139 GMT,
against $1,226.95 late in New York on Friday. U.S. gold futures
for December delivery <GCZ0> eased 20 cents to $1,228.60.
The precious metal rallied to a 1-1/2 month high at
$1,237.15 an ounce last week after a spate of lacklustre U.S.
data knocked confidence in the economic recovery, boosting
interest in the metal as a haven from risk.
Holdings of the world's largest gold-backed exchange-traded
fund, New York's SPDR Gold Trust <GLD>, rose by nearly 13 tonnes
last week, its biggest one-week rise since early June.
[]
"Clearly the ongoing concerns about growth and the fall in
some riskier assets -- equity markets, industrial commodities --
have seen more inflows into the gold market, as evidenced by the
inflows into ETFs," said Credit Agricole analyst Robin Bhar.
"There seems to be that diversification and safe haven angle
that gold is benefiting from, and that is continuing to buoy the
market," he added.
With last week's risk aversion taking a breather on Monday,
allowing the euro-dollar exchange rate and oil prices to steady
and equity markets to firm, further gains in gold have been
limited, but it remains firmly underpinned.
"Gold is a risk aversion, safe haven play for the time
being. That is the dominant factor with all the continued
uncertainty," said Bhar.
Ten-year German bunds remain near the record highs they hit
on Friday against a deteriorating economic backdrop.
WORLD STOCKS STABILISE
The euro was under pressure on Monday, hurt by concerns over
the euro zone economy, which have seen short positions in the
single currency extended, but managed to stay broadly flat
against the dollar. []
European shares rose and world stocks stabilised above last
week's one-month low as an encouraging euro zone business survey
and positive corporate merger activity news helped soften
concerns about a slowdown. [] []
In the United States, data from the Commodity Futures
Trading Commission showed a fourth consecutive weekly rise in
speculative net long positions in New York gold futures in the
week to Aug. 17, according to Commerzbank.
"At 18,600 contracts or 11.7 percent, the rise was even
sharper than before in this reviewed period," it said. "Net long
positions of 177,000 contracts is also the highest level since
the start of July."
"This shows that financial investors have been a major force
in this recent rally of gold prices," it added.
However, high prices weighed on jewellery demand in major
gold consumer India. Dealers in Mumbai reported a retreat in
wholesale gold demand as stockists awaited a fall in prices.
[]
Ailver <XAG=> was at $17.94 an ounce against $17.98.
Platinum <XPT=> was at $1,507 an ounce against $1,506.50 and
palladium <XPD=> at $476.50 against $473.
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For a graphic showing the relative price performance of gold
compared to platinum and silver, click on:
http://r.reuters.com/rew56n
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Gold has become increasingly expensive compared with the
industrial precious metals in recent weeks as concerns over the
outlook for economic growth have increased. The ratio of gold to
platinum and silver has risen to its highest since early June.
(Reporting by Jan Harvey; Editing by Sue Thomas)
