* Euro hurt by Greece comments on bailout, dollar firms
* Coming up: U.S. Q4 current account, Feb CPI data, 1230 GMT
* Coming up: U.S. Feb leading indicators data, 1400 GMT
(Updates prices, adds comment)
By Jan Harvey
LONDON, March 18 (Reuters) - Gold steadied in Europe on
Thursday, with weakness in the euro after a report that Greece
is not hopeful of receiving aid from other euro zone countries
balanced by fresh safe-haven support for the metal.
Spot gold <XAU=> was bid at $1,125.05 an ounce at 1208 GMT,
against $1,124.05 late in New York on Wednesday. U.S. gold
futures for April delivery <GCJ0> on the COMEX division of the
New York Mercantile Exchange rose $1.50 to $1,125.70.
A Greek official quoted in a newswire report said Greece was
growing increasingly pessimistic about the prospect of help at a
March 25 European Union summit and may seek International
Monetary Fund aid during the April 2-4 Easter weekend. []
Concern over the fiscal health of the debt-laden
Mediterranean country has weighed on the euro so far this year,
though it has sparked safe-haven flows into gold.
"Gold's short-term correlation (30-day basis) with the
euro-dollar declined over the past week...but this can easily
reverse," said BNP Paribas analyst Anne-Laure Tremblay.
"This morning, the euro resumed its slide versus the dollar
as Germany remains reluctant to provide financial help to Greece
and the possibility of recourse to the IMF has once again
surfaced."
"In view of euro zone issues, gold, because of its safe
haven appeal, has likely seen support as a result," she added.
Strength in the dollar versus the euro usually curbs gold's
appeal as an alternative asset and makes dollar-priced
commodities more expensive for holders of other currencies.
Analysts will be closely eyeing U.S. data due later in the
day, including fourth-quarter current account and February
consumer inflation data at 1230 GMT and February leading
indicators at 1400 GMT, for their impact on the dollar.
From a technical perspective, gold has steadied after a
recent spate of losses, analysts said.
"Gold is turning out to be an excellent 'sideways' trade
considering the range over the last month has basically stayed
between $1,088 to $1,145," ScotiaMocatta said in a note.
"We remain neutral gold, as the current price action does
not inspire any directional bias."
OIL SLIDES
Among other commodities, oil slid towards $82 a barrel on
Thursday, surrendering much of the previous day's gains, as the
dollar bounced back from its lowest in a month and a half. []
Physical demand for the precious metal in the world's
biggest bullion consumer, India, was slack on Thursday as
dealers awaited further price falls to buy. []
"Traders may be holding on their positions as they
anticipate a fall below $1,100 an ounce levels," said a dealer
with a Mumbai-based state-run bank which deals in bullion.
In the United States meanwhile, holdings of the world's
largest gold-backed exchange-traded fund, New York's SPDR Gold
Trust <GLD>, were also steady for a fifth straight session on
Wednesday. []
Analysts say the fact the SPDR has seen outflows of more
than 18 tonnes so far this year, compared with inflows of 289
tonnes in the same period of 2009, could be cause for concern.
"Currency and ETF flows are the main story (for gold)," said
Michael Lewis, head of research at Deutsche Bank. "We are
neutral on gold, to actually negative."
However, an official at the industry-funded World Gold
Council said on Thursday that global gold demand is expected to
recover in 2010 after falling 11 percent in 2009.
[]
Among other precious metals, silver <XAG=> was at $17.46 an
ounce versus $17.46, platinum <XPT=> was at $1,625 an ounce
versus $1,629, and palladium <XPD=> at $469.50 versus $476.
(Editing by Sue Thomas)
