* Gold on course for fourth straight month of gains
* Euro-priced gold hits record high of 1,067.93 euros/oz
* Euro tumbles, European stocks wilt as risk aversion flares
(Updates prices, adds comment, detail)
By Elizabeth Fullerton and Jan Harvey
LONDON, Nov 30 (Reuters) - Gold rallied 1.4 percent to a
2-1/2 week peak on Tuesday and euro-priced bullion set a fresh
record high as concern over sovereign debt levels in the euro
zone fuelled buying of the metal as a safe store of value.
A weekend rescue package for Ireland failed to assuage
investor jitters over the spread of debt problems in the euro
zone, analysts said.
Spot gold <XAU=> was bid at $1,384.00 an ounce at 1415 GMT,
against $1,368.09 late in New York on Monday, having touched a
high of $1,385.85. U.S. gold futures for December delivery
<GCZ0> rose $18.60 an ounce to $1,384.60.
The euro fell to its lowest in 11 weeks on Tuesday amid
persistent concerns over the debt crisis in the euro zone. A
consequently stronger dollar would usually weigh on gold, but in
times of extreme risk aversion, both can benefit. []
"A weaker euro equals increased worries, equals stronger
gold and rocketing euro gold," said Saxo Bank senior manager Ole
Hansen. "It is testing a little bit of resistance here, but it
shows how desperate the situation in Europe has become."
Spanish and Italian government bond yields hit euro lifetime
highs on Tuesday, hammered by concerns about the euro zone
crisis, after an 85 billion Irish rescue deal failed to stop the
rot in peripheral debt. []
Meanwhile European shares extended losses in afternoon
trade, with banks falling further on persistent worries over the
financial health of the euro zone periphery. []
Earlier 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
Gold priced in euros <XAUEUR=R> meanwhile rose to a fresh
record high at 1,067.93 euros an ounce, and was on track for its
biggest monthly gain since May, when concerns over Portugal's
financial health first battered the markets.
Spot gold was also 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. []
Meanwhile 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. []
Among other precious metals, silver <XAG=> was at $27.54 an
ounce against $27.12, platinum <XPT=> was at $1,654.74 an ounce
against $1,643.24, and palladium <XPD=> at $702.22 against $689.
(Editing by Keiron Henderson)
