* Dollar rises versus euro as Greece bailout details awaited
* Gold re-establishes relationship with U.S. currency
* Toyota recall 'may hurt U.S. dealer sales'-dealerships
(Updates throughout, changes dateline from TOKYO)
By Jan Harvey
LONDON, Feb 12 (Reuters) - Gold eased 0.9 percent in Europe
on Friday as the dollar strengthened versus the euro, with
investors avoiding the single currency as they awaited further
detail from the European Union on its aid plan for Greece.
The precious metal has re-established its usual inverse
relationship to the dollar after safe-haven buying pushed both
assets higher in the previous session.
Spot gold <XAU=> was bid at $1,087.45 an ounce at 0957 GMT
versus $1,095.85 late in New York on Thursday. In that session
it hit a one-week high of $1,097.75 an ounce as investors bought
the metal amid fears over the stability of paper currencies.
"Gold was getting back into the safe haven role, otherwise
it couldn't have climbed that far with the dropping euro," said
Commerzbank senior trader Michael Kempinski.
"I am curious to see if it can go higher. I doubt it, and
others doubt it as well, so we are coming off the highs."
U.S. gold futures for April delivery <GCJ0> on the COMEX
division of the New York Mercantile Exchange fell $6.90 to
$1,087.30 an ounce.
The euro softened across the board on Friday, slipping 0.65
percent versus the dollar, as it was weighed down by
disappointment among investors over lack of detail from the
European Union on helping debt-laden Greece. []
Strength in the U.S. unit curbs gold's appeal as an
alternative asset and makes dollar-priced commodities more
expensive for holders of other currencies.
"Uncertainty... may explain the detachment of gold prices
from normally well established currency trading patterns
(yesterday)," said HSBC in a note. "How the market assess the
aid package may help dictate the path for gold prices near
term."
Other commodities also declined, with oil easing to just
above $75 a barrel on Friday, and base metals slipping after the
previous session's hefty gains. [] []
Gold tends to track crude prices, as the metal can be bought
as a hedge against oil-led inflation.
EURO-PRICED GOLD
Gold priced in euros <XAUEUR=R> performed particularly well
on Thursday, rising 2.8 percent to a peak of 802.73 euros an
ounce, within 10 euros of the record high it hit in December.
The metal steadied on Friday to 799.02 euros an ounce from
799.49 late in the last session, but from a technical viewpoint
it is well positioned to make fresh gains, analysts said.
"Since early December, gold denominated in euros has been
locked in a well-defined contracting range," said technical
analysts at Barclays Capital. "Now that range is on the verge of
giving way for a resumption of the larger bull trend.
"A break of 802 would confirm (this), pointing to a re-test
of the 813 December high. However, this should prove to be only
a temporary stopping point as the measured move... targets the
856 area before greater signs of topping emerge."
Elsewhere demand for gold-backed exchange-traded funds
remained lacklustre, with holdings of the world's largest gold
ETF, New York's SPDR Gold Trust <GLD>, steady on Thursday, the
trust said on its website. []
Among other precious metals, silver <XAG=> was at $15.47 an
ounce against $15.64. Platinum <XPT=> was at $1,510 an ounce
against $1,528 and palladium <XPD=> at $412.50 against $419.50.
Toyota Motor Corp's <7203.T> safety recalls will hurt U.S.
dealer sales in the first quarter, two major U.S. auto
dealership groups said on Thursday. []
Platinum and palladium are heavily exposed to the automotive
market, as they are primarily consumed by carmakers for use in
catalytic converters.
(Editing by James Jukwey)
