* European shares track Asian stocks down on recession fears
* Oil, base metals post losses on slowdown fears
* Platinum sheds 3 percent as traders fret over demand
(Recasts, updates throughout, changes dateline, pvs SINGAPORE)
By Jan Harvey
LONDON, Oct 15 (Reuters) - Gold climbed more than 1 percent
in Europe on Wednesday, with stock market losses prompting
investors to buy bullion as a haven from risk.
Platinum slipped 3 percent and rhodium tumbled more than 10
percent as fears over the outlook for the global economy added
to the perception demand for the platinum group metals from the
car industry will fall.
Spot gold <XAU=> rose to $845.20/848.20 an ounce at 1000 GMT
from $835.25 in late New York trade on Tuesday. Earlier it
touched a session high of $848.30.
"There seems to be some uncertainty surrounding the stock
markets, and that is holding gold up," said Deutsche Bank trader
Michael Blumenroth. "It is still considered to be a safe haven
investment."
European shares slipped, breaking a two-day winning streak,
as the euphoria over bold government action to arrest the
financial sector meltdown dissipated and recession fears took
centre stage. []
Their dive mirrored losses in Asia overnight, and on Wall
Street on Tuesday.
Weakness in the equity markets typically fuels buying of
gold, as traders move from investment in volatile stocks and
shares to so-called 'safer' assets such as bullion.
Investors will be closely watching the performance of Wall
Street when it opens at 1330 GMT. "(People are) betting on how
stocks will perform later," said Blumenroth.
Gold was also pressured by a softening in the oil price,
with crude dipping around a dollar at its lowest point on
expectations economic weakness will further cut fuel demand.
[]
Falling crude prices typically weigh on gold, which is often
bought as a hedge against oil-led inflation.
Gold's other main external driver, the dollar, is currently
taking a back seat to economic and financial concerns, analysts
said. The U.S. currency was trading a touch firmer against the
euro. []
PLATINUM, RHODIUM SLIDE
Among other precious metals, spot silver <XAG=> was quoted
at $10.85/10.93 an ounce against $10.95.
The platinum group metals also largely posted declines, with
platinum slipping more than 3 percent and rhodium falling more
than 10 percent, as investors worried over the demand outlook as
the financial crisis spread.
Rhodium <RHOD-LON> shed $350 an ounce as investors sold the
precious metal on fears demand from carmakers would fall, and to
raise cash to cover losses on other markets. It was quoted at
$2,850 an ounce against $3,200 an ounce on Tuesday.
Auto manufacturers' association ACEA said European new
vehicle sales fell 8.2 percent in September, and U.S. car sales
have also fallen, recent figures suggest. []
"Car sales are looking grim from everywhere, really, and
that is the major home for the majority of rhodium," said one
British trader.
Spot platinum <XPT=> fell to $995/1,015 an ounce against
$1,017.50 late in New York on Tuesday. Falling auto sales are
pressuring platinum, around half of which is consumed by the car
industry annually.
Stock market losses are also weighing, as they suggest the
global financial crisis is spreading, traders say.
"I don't think that platinum -- or any other commodity --
has a life of its own right now," a German-based trader told
Reuters. "Everybody is just reacting to news from the different
bail-out plans and the developments on the equity markets."
"Banks still don't lend to each other and even the Fed is
now talking recession," he added. "It doesn't look to good for
commodities, and car sales are not really in favour of the
PGMs."
Spot palladium <XPD=> was quoted at $195.50/203.50 an ounce
against $195.
(Reporting by Jan Harvey; editing by Michael Roddy)
