* Gold outperforms sliding commods amid safe-haven buying
* European shares, euro extend losses as jitters persist
* SPDR gold ETF holdings retreat from record
(Updates, adds comment, changes dateline from SINGAPORE)
By Jan Harvey
LONDON, June 7 (Reuters) - Gold held above $1,215 an ounce
in Europe on Monday, outperforming most other commodities as
investors turned to bullion as a haven from volatility while
equities and the euro extended Friday's losses.
Spot gold <XAU=> was bid at $1,216.45 an ounce at 0903 GMT,
against $1,218.00 late in New York on Friday. U.S. gold futures
for August delivery <GCQ0> firmed 30 cents to $1,218.00.
"Friday saw a bit of a sell-off in U.S. equities, and this
morning we have seen a reaction on global equity markets," said
VTB Capital analyst Andrey Kryuchenkov. "There are euro zone
jitters, and gold remains supported on safe-haven buying."
European shares slid for a second session on Monday on
renewed investor fears over euro zone debt levels after Hungary
said on Friday its debt problems were similar to those of
Greece. []
World stocks also fell sharply as investors reacted to signs
the U.S. economic recovery may be slowing after payrolls data
disappointed investors on Friday. []
The cost of protection against a government debt default
also rose for France and several peripheral euro zone countries
as concern grew over Hungary's debt levels. []
The new Hungarian government spooked investors on Friday
when a prime minister's spokesman said he supported the view the
country had only a slim chance of avoiding the kind of debt
crisis that plunged Greece into financial instability.
The euro <EUR=> hit its lowest in more than four years
against the dollar on Monday, with investors increasingly
nervous about further losses in the currency after a clear break
below a chart support point at $1.2135. []
Its slide helped euro-priced gold <XAUEUR=R> hit a record
1,025.72 euros an ounce on Monday, though it later corrected to
1,017.20 an ounce, close to its late Friday level.
The single currency has fallen nearly 17 percent this year
versus the dollar on concerns about government debt. A strong
dollar usually pressures gold, but the relationship has weakened
as both are being purchased to protect against risk.
"While U.S. dollar strength against the euro
will likely ensure price action remains volatile, financial
market nervousness and risk aversion should keep the
complex supported," said Morgan Stanley in a note.
OTHER COMMODITIES SLIDE
Gold outperformed most other commodities, which were
pressured by Friday's disappointing U.S. data and by concerns
over Europe's debt crisis. Oil fell more than 1 percent and
industrial metals including copper and zinc slid. [] []
In investment news, holdings of the world's largest
gold-backed exchange-traded fund, New York's SPDR Gold Trust
<GLD>, eased a touch on Friday to 1,286.359 tonnes from a record
1,289.839 tonnes the previous day. []
At the same timr holdings of the biggest silver-backed ETF,
the iShares Silver Trust <SLV>, fell more than 45 tonnes to
9,208.83 tonnes.
On Monday Spot silver <XAG=> held steady along with gold at
$17.35, unchanged from late Friday's level.
"From a fundamental perspective, silver's price performance
was detached from its underlying supply and demand dynamics last
year, and instead robust investor interest led the metal to
outperform gold," said Barclays Capital in a weekly note.
"This year, we expect fabrication demand growth to outpace
supply growth; however, we also expect the market to remain in a
sizeable surplus, thereby once again exposing the price outlook
heavily to investor appetite."
Elsewhere platinum <XPT=> was at $1,488.50 an ounce against
$1,510 and palladium <XPD=> was at $415.23 against $423.75, both
caught up in selling of other industrial metals.
(Reporting by Jan Harvey; Editing by Jane Baird)
