* Euro pares gains after hitting 1-month high vs the dollar
* Euro zone finance ministers strike deal on Greece
* SPDR gold ETF holdings strike new record
* Platinum at highest in 20 months, palladium at 2-year peak
(Updates prices)
By Jan Harvey
LONDON, April 12 (Reuters) - Gold rose on Monday as the euro
strengthened versus the dollar after euro zone finance ministers
agreed on a rescue package for Greece, though the currency's
retreat from earlier highs prompted some profit-taking.
Spot gold <XAU=> was bid at $1,163.65 an ounce at 1532 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 $2.80 to $1,164.70 an ounce.
The metal hit a four-month peak at $1,168.70 an ounce
earlier in the day, but eased back a touch as the euro retreated
from highs amid fears its rise may have been overdone.
"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.
Euro zone finance ministers approved a 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. []
"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 USD may come under pressure and the EUR
rebound," said BNP Paribas analyst Anne-Laure Tremblay.
"Though the short-term correlation between gold and the
EURUSD has lessened since January, it remains a significant
factor in shaping the gold price. Hence a short term rebound in
EURUSD will be bullish for gold over the next days."
INVESTMENT RISES
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."
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 $1,736.50
an ounce before easing back to $1,731.50 an ounce versus $1,712,
and palladium <XPD=> peaking at a two-year high of $522.50.
It was later bid at $519 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. []
Silver <XAG=> hit its highest since Jan. 20 at $18.58 and
was later bid at $18.43 an ounce against $18.35.
(Editing by James Jukwey)
