* Stocks, commodities recover as risk appetite picks up
* Gold to take lead from euro/dollar, Greece
* Palladium hits two year high on U.S. ETF demand
(Recasts, adds comments, closing prices, changes byline,
dateline, previously LONDON)
By Frank Tang
NEW YORK, April 20 (Reuters) - Gold rose on Tuesday,
snapping a two-session losing streak, as a recovery in risk
appetite and better economic sentiment lifted the commodities
led by oil after last week's sell-off.
Improved U.S. corporate results led by banks like Goldman
Sachs Group Inc <GS.N> and Citigroup Inc <C.N> prompted funds
to buy assets perceived as riskier such as equities and
commodities.
"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 currency risk," said Andrey
Kryuchenkov, analyst at VTB Capital.
The metal will in the near term take the lead from the
euro/dollar, which has recently benefited from optimism about a
bailout package on debt-laden Greece.
"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," Kryuchenkov said.
Gold and the dollar usually move in opposite directions.
Recently, however, the inverse link between the two has broken
because of a flight to quality amid worries over Greece.
Spot gold <XAU=> was at $1,139.25 an ounce at 2:41 p.m. EDT
(1841 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 settled up $3.40
at $1,139.20 an ounce.
Gold prices ended 2 percent lower last week, sliding with
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.
U.S. stocks rose as energy shares advanced on higher oil
prices and bellwether companies reported quarterly results,
although some fell short of heightened expectations. []
Other commodities also recovered, with oil prices rising $2
a barrel to $83 as equity markets climbed. Base metals also
rebounded. [] []
"We still see some profit taking. A lot of people are just
on the sideline and waiting to see what the next move is," said
Mihir Dange, a COMEX floor gold trader.
Dange said that the price of gold is currently at a
crossroad, whipsawing between further liquidation pressure and
a positive technical trend.
"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."
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For a graphic showing the technical outlook for gold,
click:
http://graphics.thomsonreuters.com/gfx/WT_20102004090826.jpg
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PALLADIUM HITS TWO-YEAR HIGH
Palladium <XPD=> was at $547.50 an ounce against $535.00,
having earlier hit $550.50, its highest since March 2008.
Platinum <XPT=> was at $1,713.50 an ounce against $1,693.50.
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."
Silver <XAG=> was at $17.83 an ounce against $17.71.
Close Change Pct 2009 YTD
Chg Close % Chg
US gold <GCM0> 1139.20 3.4 0.3 1096.20 3.9
US silver <SIK0> 17.821 0.090 0.5 16.845 5.8
US platinum <PLN0> 1721.80 25.20 1.5 1471.00 17.0
US palladium <PAM0> 551.40 17.70 3.3 408.85 34.9
Prices at 2:55 p.m. EDT (1855 GMT)
Gold <XAU=> 1139.35 4.75 0.4 1096.35 3.9
Silver <XAG=> 17.82 0.11 0.6 16.84 5.8
Platinum <XPT=> 1713.50 20.00 1.2 1465.50 16.9
Palladium <XPD=> 547.50 12.500 2.3 405.50 35.0
Gold Fix <XAUFIX=> 1144.75 2.25 0.2 1104 3.7
Silver Fix <XAGFIX=> 18.00 50.00 2.9 16.99 5.9
Platinum Fix <XPTFIX=> 1714.00 6.00 0.4 1466 16.9
Palladium Fix<XPDFIX=> 543.00 1.00 0.2 402 35.1
(Additional reporting by Jan Harvey and Maytaal Angel in
London; Editing by Marguerita Choy)
