* Euro rises to near one-month high versus the dollar
* Euro zone finance ministers strike deal on Greece
* SPDR gold ETF holdings strike new record
* Platinum hits highest in 20 months, palladium at 2-yr peak
(Updates prices)
By Jan Harvey
LONDON, April 12 (Reuters) - Gold was near four-month highs
of $1,168.70 an ounce in Europe on Monday as the euro surged
versus the dollar after euro zone finance ministers agreed a 30
billion euro ($40.79 billion) aid package for debt-laden Greece.
Platinum and palladium prices also rallied, touching
20-month and two-year highs respectively, lifted by strength in
gold and expectations demand for the precious metals used in
catalytic converters will rise this year. []
Spot gold <XAU=> was bid at $1,164.55 an ounce at 1103 GMT,
against $1,159.00 late in New York on Friday. U.S. gold futures
for June delivery <GCM0> on the COMEX division of the New York
Mercantile Exchange rose $4.10 to $1,166.00 an ounce.
"The announcement of a deal reached to aid Greece over the
weekend will likely support risk appetite in the short term,
which means that the dollar may come under pressure and the euro
rebound," said BNP Paribas analyst Anne-Laure Tremblay.
"Though the short-term correlation between gold and the
EUR/USD has lessened since January, it remains a significant
factor in shaping the gold price.."
The euro <EUR=> hit one-month highs versus the dollar after
euro zone finance ministers agreed a rescue package for Greece,
prompting a short squeeze in the currency. []
Spot gold typically benefits from dollar weakness, which
lifts gold's appeal as an alternative investment and makes
dollar-priced assets cheaper for holders of other currencies.
The usual link between gold and the euro/dollar eased last
week as fears over the outlook for Greece boosted safe-haven
flows into gold while hurting the euro, but that relationship
has reemerged as one of a number of supportive factors for gold.
Euro zone finance ministers approved the 30 billion euro
emergency aid mechanism for Greece on Sunday, which together
with at least 10 billion euros expected from the International
Monetary Fund in the first year could add up to the biggest
multilateral financial rescue ever attempted. []
INVESTMENT STRONG
Investment interest in gold was strong, with holdings of the
world's largest gold-backed exchange-traded fund, New York's
SPDR Gold Trust <GLD>, rising to a record 1,141.041 tonnes on
Friday. []
Data from the Commodity Futures Trading Commission's
Commitment of Traders report on Friday also showed a rise in net
long positions, or commitments to buy, in the week to Apr. 6.
"The latest COTR figures... show how widespread the return
of investor and speculative interest to the gold market has
been," said UBS analyst Edel Tully in a note.
"Net long positioning surged 4.5 million ounces, the most
significant inflow since the 6.4 million ounce rise in the week
to Sept. 8, which at that time was the catalyst for gold to push
up through $1,000."
Industrial precious metals platinum and palladium rose, with
platinum <XPT=> hitting its highest since Aug. 2008 at $1,735 an
ounce before easing back to $1,724 an ounce against $1,712, and
palladium <XPD=> peaking at a two-year high of $519.75.
It was later bid at $510.50 against $510.
"Both metals would benefit from a period of consolidation,
with chart indicators for platinum overbought with the RSI
currently at 77," said James Moore, an analyst at
TheBullionDesk.com.
"Friday's CoT report showed net speculative longs in both
metals increased in the week to April 6th."
Silver <XAG=> hit its highest since Jan. 20 at $18.58 and
was later bid at $18.48 an ounce against $18.35.
(Editing by James Jukwey)
