* Gold hits record highs in euros, sterling, Swiss francs
* Concern over outlook for Greece persists in euro zone
* Investors worry debt issues will spread to other countries
* PGMs traders digest 20 pct rise in U.S. auto sales
(Updates prices, adds comment, detail)
By Jan Harvey
LONDON, May 4 (Reuters) - Gold hit five-month highs on
Tuesday and record peaks in euro, sterling and Swiss franc terms
as doubts over the effectiveness of a Greek bailout and fears of
contagion to other euro zone economies prompted haven buying of
the metal.
Spot gold <XAU=> hit a peak of $1,188.86 an ounce and was
bid at $1,186.50 an ounce at 1019 GMT, against $1,181.40 late in
New York on Monday.
Gold priced in euros <XAUEUR=R> hit a record peak at 906.42
euros an ounce, while sterling-priced bullion <XAUGBP=R> hit a
high of 783.33 pounds an ounce and gold denominated in Swiss
francs <XAUCHF=R> reached a record 1,298.12 francs an ounce.
Japanese yen-priced gold <XAUJPY=R> reached its highest in
27 years, according to Reuters data, while gold priced in
Canadian <XAUCAD=R> and Australian dollars <XAUAUD=R> and South
African rand <XAUZAR=R> reached its highest since December.
Investors are concerned a 110 billion euro ($146.5 billion)
bailout for debt-stricken Greece announced on Sunday may not be
enough to resolve its financial crisis, and that other euro zone
economies like Spain and Portugal may also be hit by debt
problems.
"If you look at bund futures, which are an indication of how
the market is reacting to the Greece developments, after coming
down yesterday we are trading higher today," said Peter Fertig,
a consultant with Quantitative Commodity Research.
"The market remains very cautious."
The premium investors demand to hold peripheral euro zone
government bonds rose and the cost of insuring against defaults
was higher as worries remained over a bailout plan for Greece
and fears of contagion to other issuers. []
"Gold's (varied) roles as a commodity, an alternative
currency and a safe-haven asset are pulling more in the same
direction than they have all year," said UBS analyst Edel Tully
in a note.
"We would look for a test of December's record high of
$1,226.44 so long as the threat of sovereign aftershocks in the
euro zone persists."
U.S. gold futures for June delivery <GCM0> on the COMEX
division of the New York Mercantile Exchange rose $3.60 to
$1,186.90 an ounce.
DOLLAR WEIGHS
The metal largely shrugged off gains in the dollar, which
rose 0.5 percent versus the euro as concern grew over whether
the aid package will work. []
The dollar also climbed against a basket of six currencies
after U.S. data showed factories running at their fastest pace
in nearly six years on Monday.
Strength in the dollar typically curbs gold's appeal as an
alternative asset and makes dollar-priced commodities more
expensive for holders of other currencies, but this is being
outweighed by sovereign risk concerns.
Among other commodities, oil prices fell towards $85 a
barrel as the dollar strengthened and ahead of an expected rise
in U.S. crude and fuel stocks. Prices hit 19-month highs on
Monday after well-received U.S. economic data. []
Silver prices <XAG=> were at $18.70 an ounce against $18.77.
Platinum <XPT=> was at $1,711 an ounce against $1,720, while
palladium <XPD=> was at $535.50 against $539.
The platinum group metals are particularly exposed to the
recovery in the global automobile sector, as carmakers account
for more than half of demand for the autocatalyst materials.
Data showed U.S. auto sales rose about 20 percent in April
from recession-stunted results a year earlier, reflecting a
still-gradual recovery in the economy. The figures were not as
robust as some had hoped. []
(Editing by Sue Thomas)
