* Euro pares gains after hitting 1-mth high vs 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, adds comment)
By Jan Harvey
LONDON, April 12 (Reuters) - Gold prices steadied on Monday
as a retreat from earlier highs in the euro-dollar exchange rate
prompted investors to cash in gains after the metal's rise to a
four-month peak at $1,168.70 an ounce earlier in the session.
Spot gold <XAU=> was bid at $1,160.45 an ounce at 1339 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 10 cents to $1,162.00 an ounce.
"In the futures market at least there is some doubt over how
far this rally can extend," said Standard Bank analyst Walter de
Wet. "Looking at what is happening in the options market, people
at least for now seem unwilling to buy upside."
The euro <EUR=> pared gains on Monday after earlier hitting
one-month highs versus the dollar after euro zone finance
ministers agreed a rescue package for Greece. []
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 metal retreated from highs in line with the single
currency. "(There was) some profit taking after Friday's rally
which occured when the euro came off its highs this afternoon,"
noted Heraeus trader Alexander Zumpfe.
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 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. []
NET LONGS RISE
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."
Goldman Sachs meanwhile cut its 2010 gold forecast on
Monday, citing a rise in real interest rates, but said it still
sees the metal at record highs next year. []
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 $1,726.50 an ounce against $1,712,
and palladium <XPD=> peaking at a two-year high of $519.75.
It was later bid at $515 against $510.
The metals were lifted by strength in gold and expectations
demand for the precious metals used in catalytic converters will
rise this year. []
"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 $18.41 an ounce against $18.35.
(Editing by Keiron Henderson)
