* Safe-haven demand returns as euro tumbles below $1.22
* COMEX open interest rises to record high
* Platinum group, silver rebound after sharp declines
* Coming up: U.S. Consumer Prices on Wednesday
(Recasts, updates prices to market close)
By Frank Tang and Jan Harvey
NEW YORK/LONDON, May 18 (Reuters) - Gold prices ended
unchanged on Tuesday, supported by safe-haven buying due to
volatility in the euro market.
After trading mostly lower in early activity due to hopes
that a European rescue to resolve the region's debt crisis
would work, gold rebounded as the euro tumbled to a four-year
low at under $1.22 per ounce.
Platinum and silver, which have a strong industrial demand
component, rebounded after the previous session's sharp
declines. Worries that austerity steps in the euro zone could
hamper growth, however, pressured prices, analysts said.
Investors' interest in the metal remained piqued by the
prospect of sovereign debt risks spreading beyond the euro
zone.
"The fact that Greece has actually received some of the aid
package has probably taken some heat out of the market, but we
still have to see if the aid is a cure, or just a temporary
sticking plaster (bandage)," said Societe Generale analyst
David Wilson.
Spot gold <XAU=> was at $1,220.85 an ounce at 3:25 p.m. EDT
(1925 GMT), against $1,223.00 late in New York on Monday.
U.S. gold futures for June delivery <GCM0> on the COMEX
division of the NYMEX settled down $13.50 at $1,214.60 an
ounce.
COMEX open interest rose almost 15,000 lots to an all-time
high above 600,000 lots as of May 17, indicating rising
volatility as prices held near record highs, traders said.
<NYMMTLFUT/VOI>
Contagion fears about Greece's debt crisis drove gold to a
record $1,248.95 an ounce last week and knocked other assets
lower.
Independent investor Dennis Gartman said he was abandoning
his long-held strategy of buying gold relative to non-U.S.
currencies, such as the euro, due to rising volatility in the
metal and currency markets. []
Earlier in the session, investors were cheered by news that
aid for Greece was arriving as planned, after officials said
the country received a 14.5 billion euro emergency loan from
the EU and would use some of the money to repay an 8.5 billion
euro bond. []
ETF INVESTMENT FIRM
Investment demand for gold remained high, with holdings of
the world's largest gold-backed exchange-traded fund, New
York's SPDR Gold Trust, rising just over three tonnes on Monday
to a record 1,217.108 tonnes.
Among other precious metals, silver <XAG=> was at $18.96
from $18.75 an ounce. Platinum <XPT=> was at $1,665 an ounce
against $1,666, and palladium <XPD=> was at $495.50 against
$504.
London's Platinum Week entered its second day on Tuesday,
with analysts, traders, refiners and recyclers meeting in the
British city to discuss industry developments. []
Refiner Johnson Matthey initiated proceedings on Monday
with the release of its Platinum 2010 report, in which it said
it expected the market to move closer to balance this year
after swinging into a surplus of 285,000 ounces last year.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Graphic showing Johnson Matthey's evaluation of platinum
market's supply and demand fundamentals, click on:
http://link.reuters.com/cyn84k
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
Platinum and palladium encountered heavy selling on Monday,
along with other industrial metals, led by copper's 6 percent
fall, but have since regained some lost ground.
Close Change Pct 2009 YTD
Chg Close % Chg
US gold <GCM0> 1214.60 -13.5 -1.1 1096.20 10.8
US silver <SIN0> 18.879 0.020 0.1 16.845 12.1
US platinum <PLN0> 1690.50 27.30 1.6 1471.00 14.9
US palladium <PAM0> 507.00 3.40 0.7 408.85 24.0
Prices at 3:32 p.m. EDT (1932 GMT)
Gold <XAU=> 1222.15 -0.85 -0.1 1096.35 11.5
Silver <XAG=> 18.95 0.20 1.1 16.84 12.5
Platinum <XPT=> 1665.50 -0.50 0.0 1465.50 13.6
Palladium <XPD=> 495.50 -8.500 -1.7 405.50 22.2
Gold Fix <XAUFIX=> 1216.75 1.75 0.1 1104 10.2
Silver Fix <XAGFIX=> 18.82 -29.00 -1.5 16.99 10.8
Platinum Fix <XPTFIX=> 1681.00 6.00 0.4 1466 14.7
Palladium Fix<XPDFIX=> 507.00 4.00 0.8 402 26.1
(Editing by Marguerita Choy)
