* Euro zone debt woes hurt risk appetite, weigh on markets
* SPDR gold ETF holdings rise 6 T to record 1,146.216 T
* Prices hold near record highs in euros, Swiss francs
(Updates prices, adds comment)
By Jan Harvey
LONDON, April 27 (Reuters) - Gold slipped below $1,150 an
ounce on Tuesday, weighed down by weakness in the euro and other
commodities as concerns over sovereign risk in the euro zone
hurt appetite for assets seen as higher risk.
Spot gold <XAU=> was bid at $1,149.05 an ounce at 1341 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 $4.30 to $1,149.70 an ounce.
"After failing to move above $1,160, the gold price is
retreating this afternoon, following a weaker euro," said BNP
Paribas analyst Anne-Laure Tremblay.
"Sentiment on the market is mixed. Ongoing weakness in the
euro on sovereign debt concerns will weigh on gold prices, but
the metal's safe-haven appeal may offer an offsetting support."
The euro <EUR=> slipped 0.8 percent against the dollar as
financial markets awaited 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. []
[]
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. []
Concerns over Greece prompted selling of other commodities,
with oil prices falling nearly 1 percent towards $83 a barrel
and base metals prices declining. [] []
Stock markets also slipped, with European shares dropping
sharply and U.S. stocks opening lower. []
Traders are now 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.
SUPPORT REMAINS
Support remains for gold, however, as some investors
continue to turn to the precious metal as a safe store of value
amid instability in the currency markets.
"Gold has been pretty resilient in the face of a strong
dollar," said Standard Chartered analyst Daniel Smith. "That
shows there is underlying strength. Investors' interest has been
reignited partly by renewed worries about Greece."
Investment demand took holdings of the world's largest
gold-backed exchange-traded fund, New York's SPDR Gold Trust
<GLD>, rose more than 6 tonnes to a record 1,146.216 tonnes on
Monday, the fund said. []
Gold in currencies other than the dollar also held
relatively firm, after 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, as well as 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."
Silver <XAG=> was at $18.15 an ounce against $18.26,
platinum <XPT=> at $1,727.50 an ounce against $1,743, and
palladium <XPD=> at $550.50 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 Sue Thomas)
