* Gold market watching Greece, ETFs
* Supply concern pushes platinum to highest since January
* Palladium touches 2-year high on fund buying
(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.
Palladium <XPD=> hit a two-year high of $483.50 an ounce as
investors returned to the precious complex and as this year's
uptick in physical buying underpinned the metal, which is used
to make autocatalysts.
Platinum <XPT=> jumped to $1,648.50 an ounce, its highest
since Jan. 20 on worries about supplies from South Africa, the
world's largest producer of the metal, which is also used to
make autocatalysts that clean car emissions.
Spot gold <XAU=> was at $1,115.20 a troy ounce at 1500 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. []
For the ADP report click: []
A weaker dollar makes dollar-priced gold cheaper for
non-U.S. investors.
"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."
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.
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 $10.20 to
$1,114.90 an ounce after falling on Tuesday due to month-end
position squaring and contract rollover.
On the investment front, 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. []
In other precious metals, spot platinum was at $1,644.00 an
ounce from $1,616.50 on Tuesday, palladium <XPD=> at $477.50
from $466.5, having earlier hit its highest since March 2008.
"Investors have come back in, they've just got the bug.
Overall, there's been some physical buying of platinum and
palladium," said Commerzbank trader Rory McVeigh.
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.
Lonmin said 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. []
Silver <XAG=> was at $17.52 from $17.25, having earlier hit
$17.61, its highest since March 10.
(Additional reporting by Maytaal Angel; Editing by Sue
Thomas)
