* Dollar weakens vs the euro; single currency tops $1.48
* Oil prices rise towards $74 a barrel
* Platinum, palladium strike fresh 13-month highs
(Updates throughout, previous TOKYO)
By Jan Harvey
LONDON, Oct 13 (Reuters) - Gold hit a record $1,065.25 an
ounce in Europe on Tuesday as the dollar fell to day lows versus
the euro, fuelling interest in bullion as an alternative asset.
A rise in oil prices to nearly $74 a barrel and a recovery
in physical demand for gold after a sluggish year for the
jewellery market are also helping lift the metal, analysts said.
Spot gold <XAU=> was bid at $1,062.55 an ounce at 0957 GMT
against $1,055.25 late in New York on Monday. It has rallied 12
percent since the beginning of September and hit record highs
for three consecutive sessions last week.
"Point to whatever you like -- strong crude prices, surging
softs, EUR/USD poised to break higher, approach of the full moon
tomorrow -- (gold) just doesn't want to go down," said Tom
Kendall, precious metals strategist at Mitsubishi Corp.
U.S. gold futures for December delivery <GCZ9> on the COMEX
division of the New York Mercantile Exchange rose $6.50 to
$1,064.00. They also touched a record at $1,066.70 earlier.
Gold prices jumped in line with a spike in the euro versus
the dollar to session highs. The single currency broke above
$1.48 in early European trade. []
Currency and equity traders are awaiting the release of U.S.
corporate results later in the week for clues as to the future
direction of trade. On the wider markets, European shares turned
positive after easing in early trade. []
Oil also rose close to $74 a barrel. Strength in crude
prices often benefits gold, both because it boosts interest in
commodities as an asset class and as the precious metal can be
bought as a hedge against oil-led inflation. []
Gold enthusiasts are also taking heart from a pick-up in
demand for gold jewellery in India, the world's largest bullion
consumer last year, after an extremely sluggish year. []
Last-minute purchases ahead of the key Diwali festival this
month are keeping premiums steady, dealers said. However, more
gold scrap is also coming into the Asian market has prices rise,
they said.
ETF DEMAND ALIVE BUT SOFT
Demand for gold to back bullion exchange-traded funds is
also lacklustre. Holdings of the world's largest gold ETF, the
SPDR Gold Trust <GLD>, were steady on Monday. []
A spike in demand for gold ETFs to record levels in the
first quarter was a key driver of the metal's first break
through $1,000 an ounce this year in February.
Holdings of ETF Securities' three gold-backed products rose
nearly 25,000 ounces to record levels on Monday.
From a technical perspective, gold is poised to hit
resistance at $1,066 an ounce. If it fails to breach that level,
it could slip back to its previous record high above $1,030 and
from there to $1,000, Commerzbank analysts said.
"A weekly close above $1,057 is still needed in order to
confirm that it has been cleared," they said in a report. "Above
here would introduce scope towards $1,191."
Elsewhere spot silver <XAG=> was bid at $17.86 an ounce
against $17.68. Platinum <XPT=> hit a 13-month high of $1,361.50
and palladium <XPD=> a 13-1/2 month peak of $333 an ounce.
They were later bid at $1,356 an ounce versus $1,336.50 late
in New York on Tuesday and at $330 versus $325.50 respectively.
Palladium has outperformed platinum since the beginning of
September, rising 15 percent against 10 percent for platinum.
"I think speculators are playing the long palladium/short
platinum game again, thus keeping the platinum price increase
relatively modest," said one platinum group metals trader.
"They assume that with the lower platinum demand due to the
lower demand for diesel cars, and the increasing importance of
palladium in the Chinese jewellery industry, the supply/demand
picture for palladium is better than for platinum."
"I wouldn't necessarily agree with that," the trader said.
(Additional reporting by Veronica Brown; Editing by James
Jukwey)
