* Gold on course for 4th straight month of gains
* Gold in euros hits record high of 1,058.70 euros/oz
* Coming up: U.S. consumer confidence Nov 1445 GMT
(Updates prices, adds India Nov gold imports)
By Elizabeth Fullerton
LONDON, Nov 30 (Reuters) - Gold climbed on Tuesday and set
fresh record highs in euro terms, drawing safe-haven buying as a
weekend rescue package for Ireland failed to assuage investor
jitters over the spread of debt problems in the euro zone.
The euro hit its lowest in 10 weeks against the dollar
[] and Spanish and Italian government bond yields hit euro
lifetime highs, as the market focused on which euro zone
country may be the next to need a bailout. []
Spot gold was up 0.25 percent at $1,371.50 an ounce at 1252
GMT. Gold futures were also trading at $1,371.5.
In euro terms, gold was trading at 1,054.86 euros an ounce,
off a record high set earlier in the session of 1,058.70 euros.
"If you... look at what is happening in euro gold, which is
at all-time highs, there's definitely some safe-haven buying and
it clearly shows it's not just all about the forex moves," said
Walter de Wet, an analyst at Standard Bank.
"There is good, solid underlying demand."
An 85 billion euro ($110.7 billion) package for Ireland
announced on Sunday did little to stem fiscal concerns,
reflecting a lack of confidence that the deal would contain the
euro zone's debt crisis. []
The euro fell below $1.30, its lowest since mid-September,
while the iTraxx SovX index of Western European credit default
swap prices rose to an all-time high as the cost of protecting
euro zone sovereign debt against default surged. []
[]
"Credit markets dismissed news of a definite bailout for
Dublin with the broader market still reluctant to turn positive
on the monetary union," said VTB Capital in a note.
"Credit default swaps and sovereign yields spreads against
the benchmark Bund have widened significantly in the past week,
still near fresh highs for most peripheral member states in the
euro zone."
PHYSICAL DEMAND
On the geopolitical front, South Korean President Lee
Myung-bak vowed retaliation against any further provocation by
the North after it shelled an island last week. []
Gold was on course for a fourth consecutive month of gains,
matching a similar winning run from November 2008. Physical
buying in Asia remained supportive of gold prices.
"We've seen good physical demand from China and India, both
from jewellers and investors," said a Hong Kong-based dealer,
citing premium for gold bars in Hong Kong at $1.20 to $1.50
above London prices.
The world's largest gold-backed exchange-traded fund, SPDR
Gold Trust <GLD>, said its holdings rose to 1,286.603 tonnes by
Nov. 29 from 1,285.084 tonnes on Nov. 22. []
The International Monetary Fund has slowed the rate of
selling its gold by 40 percent in October from the previous
month, as interest among central banks to own the metal as a
hedge against economic uncertainty rose. []
But November gold imports by India -- the world's biggest
gold consumer -- are provisionally expected to be at 20-25
tonnes, below the Reuters forecast of 34 tonnes, the head of the
Bombay Bullion Association said. Two major Indian festivals fall
in November, typically prompting strong gold demand. India
imported 30.7 tonnes of the yellow metal in November 2009.
The rest of the precious metals complex presented a mixed
picture.
Spot silver <XAG=> was trading down 0.44 percent at $27.0 an
ounce, but was headed for a 10 percent monthly gain, also a
fourth straight month of gains.
"Silver coin and small bar demand has been very apparent
this month... but over the past ten days or so some dealers note
that physical demand has fallen back to more 'normal' levels,"
said UBS in a note.
"Because a multitude of demand indicators suggest that
investor appetite for silver is waning, at least in the short
term, and because of the risk of year-end position-squaring,
today we lower our one-month forecast to $25.50, from $30
previously."
Platinum was flat at $1,642.99 an ounce and palladium was
0.29 percent higher at $690.97.
(Editing by Keiron Henderson)
