* Stocks, commodities recover as risk appetite picks up
* Goldman faces fresh probe in United Kingdom
* Leading jeweller sees Turkish jewellery exports up 20 pct
(Updates, adds comment, changes dateline from SINGAPORE)
By Jan Harvey
LONDON, April 20 (Reuters) - Gold rose back above $1,140 an
ounce in Europe on Tuesday as a recovery in the euro and other
commodity prices helped the metal regain some upward momentum
after a two-session slide to its lowest since early April.
Prices came under pressure along with those of other
commodities after U.S. regulators charged Goldman Sachs with
fraud on Friday, prompting selling of assets seen as higher
risk, including commodities and currencies like the euro.
Spot gold <XAU=> was bid at $1,141.15 an ounce at 0950 GMT,
against $1,134.60 late in New York on Monday. U.S. gold futures
for June delivery <GCM0> on the COMEX division of the New York
Mercantile Exchange rose $6.20 to $1,142.00 an ounce.
"Technical signals are still fairly supportive for all
precious metals. Momentum and trend ratings are still positive,"
said Tobias Merath, head of research at Credit Suisse. "And we
have seen the euro-dollar creeping higher."
"Since the beginning of April yields have been coming off,
and that is supportive for gold," he added. "You don't get any
yield from your investment in gold, so when yields drop, then
other investments become less attractive."
The euro <EUR=> rose 0.17 percent versus the dollar on
Tuesday, rebounding after hefty losses made after Goldman Sachs
<GS.N> was charged with fraud by U.S. regulators over its
marketing of a subprime mortgage product. []
European shares pared gains after Britain's financial
regulator began a formal enforcement investigation into Goldman
Sachs, four days after U.S. regulators filed a fraud case
against Wall Street's biggest investment bank. []
OIL CLIMBS $1/BBL
Other commodities also recovered, with oil prices rising $1
a barrel as equity markets climbed and restrictions on European
aviation were eased. Base metals also recovered. [] []
Gold prices took some support from expectations physical
demand for the precious metal, especially for jewellery, will
recover this year after slumping in 2009.
The chairman of leading Turkish jeweller Atasay said he
expects jewellery exports from major manufacturer Turkey will
rise 20 percent this year. []
Among other precious metals, silver <XAG=> was bid at $17.90
an ounce against $17.71. Analysts have noted an outflow from
silver-backed ETFs this year, but say the metal is still seeing
good demand for other products, such as silver bullion bars.
A top executive said on Monday that India's HDFC Bank
<HDBK.BO> will sell silver bars during a May local festival for
precious metals purchases, the first time ever by a bank, as
demand picks up. []
Mints as far afield as the United States, Russia, New
Zealand and Austria said sales of silver bars rose in the first
quarter, even as sales of gold investment products like bars and
coins was falling from 2009's high levels.
Platinum <XPT=> was at $1,703 an ounce against $1,693.50,
while palladium <XPD=> was at $540.50 against $535. The metals
are supported by ETF demand, particularly from the United
States.
"The palladium ETF launched in the United States at the
start of the year recorded inflows of 30,000 ounces yesterday,
increasing its stocks to 670,000 ounces," Commerzbank said.
"The fund... accounts for over 10 percent of annual global
demand and is already larger than its European counterpart."
(Reporting by Jan Harvey; Editing by William Hardy)
