* Gains in the euro, oil prices lift gold above $1,190/oz
* SPDR gold ETF sees biggest outflow in a year in July
* Turkey raises July gold imports to 19.9 T vs 14.3 T
* Palladium breaks through $500/oz to highest since June 21
(Updates prices, adds comment)
By Jan Harvey
LONDON, Aug 2 (Reuters) - Gold prices climbed in Europe on
Monday as the euro firmed to a three-month high against the
dollar and prices of other commodities like crude oil jumped on
the back of rising equity markets.
Spot gold <XAU=> rose as high as $1,190.40 an ounce and was
bid at $1,185.35 an ounce at 1343 GMT, against $1,181.50 late in
New York on Friday. U.S. gold futures for August delivery <GCQ0>
rose $4.10 to $1,188.00.
Simon Weeks, head of precious metals at the Bank of Nova
Scotia, said gold had risen above the 100-day moving average at
$1,183 an ounce on the back of currency moves and rising oil
prices. "Next resistance is $1,200-$1,205," he said.
He added that gold remained vulnerable to further losses,
especially if equity markets continued to climb. "People will
liquidate safe havens and put risk on," he said.
Gold has managed to arrest a slide that last week took it to
a three-month low of $1,156.90 an ounce. Investment in the
precious metal has tailed off over the summer months as assets
seen as higher risk like equities firmed at gold's expense.
However, it is showing signs of re-establishing its usual
inverse link with the dollar, and is benefiting from gains in
other commodities. Gold is often bought as part of a commodity
basket by investors.
The wider financial markets are benefitting from better
appetite for risk. Equities made strong gains on Monday in
Europe, with the FTSEurofirst 300 <> rising 2.3 percent to
three-month highs. []
Wall Street opened about 1 percent higher on Monday,
building on last month's solid gains, as investors focused on
encouraging corporate results, including strong bank earnings
out of Europe. []
Other assets seen as higher risk also rose, with oil prices
climbing nearly 2 percent to above $80 on Monday as
macroeconomic indicators in top energy consumers the United
States and China showed slower but sustained growth. []
DOLLAR SLIDES
The dollar index <.DXY> hit a three-month low on Monday,
while the euro <EUR=> extended gains against the U.S. unit to
above an important technical level that analysts say suggests
the currency's rally is gaining momentum. []
Lower prices meanwhile encouraged higher gold demand from
key bullion-consuming centres China, India and the Middle East.
Indian gold buying rose on Monday afternoon as traders took
advantage of the strong rupee, which made the dollar-quoted
asset cheaper, to complete deals, traders said. []
Meanwhile imports into major gold consumer Turkey rose to
19.9 tonnes in July, the Istanbul Gold Exchange said, from 14.3
tonnes a year ago and 300 kilograms in June. []
However, the world's largest bullion exchange-traded fund,
the SPDR Gold Trust <GLD>, saw its biggest outflow in a year
last month, with holdings down more than 38 tonnes in July to
1,282.3 tonnes. []
The World Gold Council said the International Monetary Fund
sold 17.4 tonnes of gold in June as part of a planned programme
of bullion sales. That leaves 120.2 tonnes of gold still to be
sold under the programme. []
Silver <XAG=> was at $18.36 an ounce versus $17.96, while
its ratio to gold -- or how many ounces of silver are needed to
buy an ounce of gold -- hit its lowest since mid-May at 65.0.
Platinum <XPT=> was at $1,587 an ounce against $1,566.55,
while palladium <XPD=> was at $501 against $491. Palladium
reached a fresh 10-week high at $502 an ounce in earlier trade.
Both metals saw significant interest on the New York futures
market last week, according to the Commodity Futures Exchange
Commission's Commitment of Traders report.
(Editing by Sue Thomas)
