* Euro falls nearly 1 pct as worries persist over Greece
* Oil slides 1.8 pct after stocks data as dollar weighs
* SPDR gold ETF holdings rise to highest since January
* Russian gold output seen down 10 pct in first quarter
(Updates, adds comment, previous SINGAPORE)
By Jan Harvey
LONDON, March 24 (Reuters) - Gold eased below $1,100 an
ounce in Europe on Wednesday as the dollar rose nearly 1 percent
versus the euro, with persistent worries over the fiscal health
of debt-laden Greece weighing on the single currency.
Spot gold <XAU=> was bid at $1,094.55 an ounce at 1027 GMT,
against $1,101.65 late in New York on Tuesday. U.S. gold futures
for April delivery <GCJ0> on the COMEX division of the New York
Mercantile Exchange fell $9.10 to $1,094.60 an ounce.
The euro fell to its lowest since early May last year
against the dollar as investors flocked to the perceived safety
of the U.S. currency on concerns over the euro zone. []
"If we continue to have nervousness over Europe and the
euro, then we are likely to see supported dollar values and
therefore slightly weaker gold values," said David Wilson, an
analyst at Societe Generale.
The move comes ahead of a European Union summit later this
week, and after Germany signalled it may accept European
financial aid for Greece as a last resort. []
Uncertainty over Greece is likely to continue to weigh on
the euro, Credit Agricole said in a note.
"It looks unlikely that the summit will generate any
concrete EU plans that will sufficient to assuage market
nerves," it said.
"Instead it seems that the Germans and the French, if
speculation is to be believed, both agree that the IMF should be
involved in any support."
Euro-priced gold <XAUEUR=R> is benefiting from weakness in
the currency, rising 0.4 percent to 819.42 euros an ounce versus
816.04 euros late on Tuesday.
OIL SLIDES
Gold typically falls as the dollar firms, as strength in the
U.S. unit curbs gold's appeal as an alternative asset and makes
it more expensive for holders of other currencies. That link
weakened earlier this year, but has since been restored.
For a graphic showing the correlation between gold prices
and the euro-dollar, click on:
http://graphics.thomsonreuters.com/gfx/SBrb_20102403095820.jpg
Among other commodities, oil also fell nearly $1.50 a barrel
after a report showed a surge in U.S. crude inventories,
fuelling fears about demand recovery from industrialised nations
as Europe struggled to manage Greece's debt crisis. []
The world's largest gold-backed exchange-traded fund, New
York's SPDR Gold Trust <GLD>, said its holdings rose 4.6 tonnes
on Tuesday to 1,120.079 tonnes, their highest since January 7.
[]
"The increase in ETF holdings yesterday is encouraging, as
is the scale of buying around and below $1,100, and suggests
further pockets of investment diversification will continue to
underpin prices," said TheBullionDesk.com analyst James Moore.
On the supply side, the Russian Gold Industrialists' Union
said the country's gold output would fall 10 percent
year-on-year in the first quarter. Russia was the world's fifth
largest gold producer last year. []
Silver <XAG=> was bid at $16.68 an ounce against $16.97,
tracking losses in gold, while platinum <XPT=> was at $1,587 an
ounce against $1,607 and palladium <XPD=> slipped to $450.50
against $464.50.
(Reporting by Jan Harvey; Editing by William Hardy)
