* Euro hurt by Greece comments on bailout, dollar firms
* Greek offical dismisses reports of pessimism over EU aid
* Oil prices slip below $82/bbl
(Updates prices, adds comment)
By Jan Harvey
LONDON, March 18 (Reuters) - Gold steadied in choppy trade
on Thursday as recurring fears over the outlook for debt-laden
Greece sparked some safe-haven buying of the metal, but also
knocked the euro nearly 1 percent lower versus the dollar.
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 $1,125.60 an ounce at 1633 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 $2.30 to $1,126.50.
The metal is caught between the negative factor of the
falling euro and positive safe-haven flows, analysts said.
"If Greece is becoming a concern again, people should be
going to gold (as a haven), but the euro should be falling,
which should be bad for gold," said Citigroup analyst David
Thurtell.
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.
The dollar extended gains after rumours the Federal Reserve
is set to hike the discount rate. []
Strength in the U.S. unit 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 below $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 $17.45 an
ounce versus $17.46, platinum <XPT=> was at $1,628.50 an ounce
versus $1,629, and palladium <XPD=> at $474 versus $476.
(Editing by James Jukwey)
