* Concern over euro zone debt issues spread
* Prices hold near record highs in euros, Swiss francs
* SPDR gold ETF holdings rise 6 T to record 1,146.216 T
(Updates prices)
By Jan Harvey
LONDON, April 27 (Reuters) - Gold softened a touch in Europe
on Tuesday but held near $1,150 an ounce as investment demand on
the back of concern over sovereign risk in the euro zone helped
balance weakness in the euro and other commodities.
Holdings of the world's largest gold-backed exchange-traded
fund, New York's SPDR Gold Trust <GLD>, rose to more than 6
tonnes to a record 1,146.216 tonnes on Monday, the fund said.
Spot gold <XAU=> was bid at $1,149.50 an ounce at 1211 GMT,
against $1,153.38 late in New York on Monday. U.S. gold futures
for June delivery <GCM0> on the COMEX division of the New York
Mercantile Exchange eased $3.90 to $1,150.10 an ounce.
"Gold has been pretty resilient in the face of a strong
dollar and has made new highs in several other currencies," said
Standard Chartered analyst Daniel Smith. "That shows there is
underlying strength."
"Investors' interest has been reignited partly by renewed
worries about Greece, so we saw the SPDR ETF up again to a new
high yesterday. We are building up to a breakout on the upside."
The financial markets are awaiting clarity over talks on
financial aid for debt-laden Greece, while concern over credit
risk spread to other euro zone countries like Spain and
Portugal, knocking the euro <EUR=> 0.8 percent lower. []
The spread between Greek and German government bond yields
hit its widest in 12 years on Tuesday, showing premiums demanded
by investors to hold Greek debt are rising. []
Athens is seeking help with its debts from the euro zone and
the IMF. Germany said on Monday it is ready to commit funds, but
demanded Athens take painful austerity measures. []
Traders are also awaiting the outcome of a two-day monetary
policy meeting of the U.S. Federal Open Market Committee, which
starts on Tuesday. The Fed is expected to hold interest rates,
but will discuss how to unwind its massive stimulus package.
MARKETS UNDER PRESSURE
On other markets, world stocks were under pressure from
worries over Greek debt, with European shares falling and U.S.
stocks seen opening lower. Oil retreated towards $83 a barrel,
and base metals prices declined. [] [] []
Gold has held relatively firm, however, reaching on Monday
record highs in euros <XAUEUR=R> at 868.57 euros an ounce, and
Swiss francs <XAUCHF=R> at 1,245.38 francs an ounce, and 27-year
highs in Japanese yen <XAUJPY=R> at 109,345 yen an ounce.
The highs are based on Reuters data dating back to 1982.
"Concerns that Greece's debt crisis could spill over to
other eurozone countries despite the 45 billion euro rescue
package is prompting investors to put their money in safer
investment alternatives such as gold," Commerzbank said.
"As long as there is still a risk of the debt crisis
spreading and the uncertainty that this is bringing to financial
markets, gold prices should be well supported."
On the physical markets, while SPDR ETF holdings hit record
levels, gold buying in main consumer India softened as traders
awaited a further price fall, with a weaker rupee, which makes
dollar-priced gold expensive, also weighing. []
Among other precious metals, silver <XAG=> was at $18.12 an
ounce against $18.26, platinum <XPT=> at $1,718.50 an ounce
against $1,743, and palladium <XPD=> at $549.50 against $564.50.
"Despite the scale of speculative and investment longs, we
expect both (platinum and palladium) to remain underpinned by
tightening fundamentals, maintaining their long-term up-trends,"
said James Moore, an analyst at TheBullionDesk.com, in a note.
(Editing by James Jukwey)
