* Safe haven buying amid worry over Greece, credit outlook
* Euro hurt by Greece comments on bailout, dollar firms
* Greece dismisses pessimism over EU aid; denies IMF help
* Coming up: U.S. existing home sales on Tuesday
(Recasts, adds comments, updates closing prices, changes
byline, dateline)
By Frank Tang
NEW YORK, March 18 (Reuters) - Gold rose on Thursday
despite a resurgent dollar, as flight-to-quality buying boosted
the precious metal due to sovereign debt worries surrounding
Greece and uncertainty about currencies.
Bullion's gains in the face of a stronger dollar indicate
the inverse relationship between the metal and the U.S.
currency is broken for now and could weaken further, traders
said.
"Gold did end higher today despite the weak euro/dollar,
and that is a very bullish indicator. With worries about
sovereign debt, there is still a safe haven to the gold," said
Mihir Dange, a COMEX gold floor trader in New York.
Gold's ability to hold above $1,118 an ounce for a second
straight day also signaled strong buying interest, Dange said.
Economic optimism also provided support to gold as an
inflation hedge, with the Dow Jones industrial average is on
track to post an eight-session winning streak.
Spot gold <XAU=> was at $1,127 an ounce at 2:43 p.m. EDT
(1843 GMT), up from $1,124.05 late in New York on Wednesday.
U.S. gold futures for April delivery <GCJ0> on the COMEX
division of the NYMEX settled up $3.30 at $1,127.50.
The session featured mixed trading as the falling euro
prompted selling but the search for a safe haven sparked
buying, 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.
Recurring fears over debt-laden Greece and the global
credit outlook knocked the euro nearly 1 percent lower versus
the dollar. []
A 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.
Greek Finance Minster George Papaconstantinou had denied
that Athens may soon turn to the IMF god aid, saying all
options for getting support are still open. []
GLD IN FOCUS
Among other commodities, oil slid toward $82 a barrel on
Thursday, surrendering much of the previous day's gains, on a
dollar rise. []
Physical demand for gold in the world's biggest bullion
consumer, India, was slack on Thursday as dealers awaited
further price falls to buy. []
In the United States meanwhile, holdings of the world's
largest gold-backed exchange-traded fund, New York's SPDR Gold
Trust <GLD> -- often called GLD, its ticker symbol -- were also
steady for a fifth straight session on Wednesday. []
Analysts say the fact the GLD 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.
Among other precious metals, silver <XAG=> was at $17.40 an
ounce versus $17.46, platinum <XPT=> was at $1,623 an ounce
versus $1,629, and palladium <XPD=> at $475.50 versus $476.
Close Change Pct 2009 YTD
Chg Close % Chg
US gold <GCJ0> 1127.50 3.3 0.3 1096.20 2.9
US silver <SIK0> 17.422 -0.101 -0.6 16.845 3.4
US platinum <PLJ0> 1631.00 -4.60 -0.3 1471.00 10.9
US palladium <PAM0> 478.75 -0.10 0.0 408.85 17.1
Prices at 3:08 p.m. EDT (1908 GMT)
Gold <XAU=> 1126.60 2.55 0.2 1096.35 2.8
Silver <XAG=> 17.41 -0.05 -0.3 16.84 3.4
Platinum <XPT=> 1623.00 -6.00 -0.4 1465.50 10.7
Palladium <XPD=> 475.50 -0.500 -0.1 405.50 17.3
Gold Fix <XAUFIX=> 1122.75 0.00 0.0 1104 1.7
Silver Fix <XAGFIX=> 17.49 -5.00 -0.3 16.99 2.9
Platinum Fix <XPTFIX=> 1633.00 4.00 0.2 1466 11.4
Palladium Fix<XPDFIX=> 477.00 3.00 0.6 402 18.7
(Reporting by Frank Tang and Jan Harvey; Editing by David
Gregorio)
