* Stocks, commodities recover as risk appetite picks up
* Palladium hits two year high
* Leading jeweller sees Turkish jewellery exports up 20 pct
(Updates prices, adds fresh quotes)
By Jan Harvey
LONDON, April 20 (Reuters) - Gold rose back above $1,140 an
ounce on Tuesday as a recovery in risk appetite lifted commodity
prices and weighed on the dollar, helping the metal regain some
upward momentum after a slide to two-week lows.
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 $1,144.25 an ounce at 1406 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 $9.1 to $1,145.00 an ounce.
"Gold just trades like a risk asset at the moment. It's
really hard to catch the moment where we start trading as a
hedge against sovereign or curerncy risk," said Andrey
Kryuchenkov, analyst at VTB Capital.
"Unless things go completely out of hand, small concerns
about Greece and Goldman will hike the dollar, and gold
continues to trade against the dollar. Looks like we're going to
consolidate. There's very strong resistance at $1,150."
The dollar index was down slightly as global risk appetite
improved after robust first-quarter U.S. earnings led by Goldman
Sachs and expectations of rate increases in Australia and
Canada. []
Goldman said on Tuesday it nearly doubled its first-quarter
earnings, beating expectations. U.S. stock futures extended
gains on the news. [] []
But the U.S. Securities and Exchange Commision's recent move
to charge the bank with fraud over its marketing of a subprime
mortgage product has been benefiting the U.S. currency overall
and knocking gold. []
Other commodities recovered on Tuesday, with oil prices
rising $1 a barrel as equity markets climbed and restrictions on
European aviation were eased. Base metals also rebounded. []
[]
"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."
PHYSICAL DEMAND SEEN RECOVERING
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 to rise
20 percent this year. []
Among other precious metals, silver <XAG=> was bid at $17.97
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 $1,715 an ounce against $1,693.50,
while palladium <XPD=> was at $547 against $535, having earlier
hit $550.50, its highest since March 2008.
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."
(Additional reporting by Maytaal Angel;editing by James Jukwey)
