* Euro hurt by Greece comments on bailout, dollar firms
* Greek offical dismisses reports of pessimism over EU aid
* Oil prices slip towards $82/bbl
(Updates prices, adds comment)
By Jan Harvey
LONDON, March 18 (Reuters) - Gold slipped below $1,120 an
ounce on Thursday as the dollar extended gains against the euro,
with the single currency coming under pressure from uncertainty
over the outlook for Greece's debt problems.
A media report earlier said Greece was not hopeful of
receiving assistance from other euro zone countries and may seek
aid from the International Monetary Fund in April. []
Spot gold <XAU=> was bid at $1,119.15 an ounce at 1527 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 fell $5.00 to $1,119.30.
"Gold could not get above $1,128 and the euro is coming off,
so there has been a bit of selling in gold after the (London PM)
fix," said Afshin Nabavi, head of trading at MKS Finance.
The euro slipped after a Dow Jones report that Greece was
growing more pessimistic about the prospect of help from the EU
and may turn to the IMF for aid, though an official later
dismissed the report. [] []
Concern over the fiscal health of the debt-laden
Mediterranean country has weighed on the single currency so far
this year, though it has sparked safe-haven flows into gold.
Strength in the dollar usually curbs gold's appeal as an
alternative asset and makes dollar-priced commodities more
expensive for holders of other currencies.
"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 gold 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 was expected to
recover in 2010 after falling 11 percent in 2009.
[]
Among other precious metals, silver <XAG=> was at $17.38 an
ounce versus $17.46, platinum <XPT=> was at $1,623.50 an ounce
versus $1,629, and palladium <XPD=> at $473 versus $476.
(Editing by Keiron Henderson)
