(Repeats to delete extraneous word in first paragraph)
* Gold surrenders Monday's gains as dollar firms vs euro
* Euro suffers from persistent fears over Greek debt
* Platinum, palladium pare gains but market seen tightening
(Updates, adds comment, changes dateline from SINGAPORE)
By Jan Harvey
LONDON, April 6 (Reuters) - Gold slipped in Europe on
Tuesday, surrendering some of the gains that took the metal to a
four-week high in the previous session, as the dollar
strengthened versus the euro.
The single currency declined broadly, driven by concern over
Greece's persistent debt problems, after a report that the
country is set to launch a multi-billion dollar bond in the
United States this month. []
Spot gold <XAU=> was bid at $1,125.10 at 0924 GMT against
$1,129.70 late in New York on Monday, when it rose as high as
$1,133.20 an ounce, its firmest since early March.
RBS Global Banking & Markets analyst Daniel Major said while
he sees the $1,100 an ounce level providing strong near-term
support, in the longer run, the metal may struggle to maintain
such prices.
"Longer term, we think we will see further dollar strength,
and we are going into a seasonally weaker period for jewellery
demand, as well as a period that is likely to be less supportive
from the investment sector," he said.
Further interest rate rises, after Australia's decision to
lift rates overnight, may also raise the opportunity cost of
holding gold, he added. "The risks are to the downside in terms
of the gold price," he said.
The euro <EUR=> slipped versus the dollar after the report of
Greece's plans to launch a U.S. bond and sell itself as an
emerging market, and after it said it wants to amend a recent EU
aid deal, which highlighted Athens' ongoing deficit problems.
[]
The dollar was also supported by strong readings from the
U.S. services sector and housing market on Monday which, coming
on the heels of a solid jobs report late last week, bolstered
the view that the U.S. economy is improving.
Strength in the dollar curbs gold's appeal as an alternative
asset and makes dollar-priced commodities more expensive for
holders of other currencies.
U.S. gold futures for April delivery <GCJ0> on the COMEX
division of the New York Mercantile Exchange fell $7.70 to
$1,125.20 an ounce.
PLATINUM, PALLADIUM RETREAT
Among other commodities, oil prices also retreated from the
previous session's 18-month highs as the dollar rallied. Gold
tends to track crude prices, as the metal can be bought as a
hedge against oil-led inflation. []
Elsewhere, Indian dealers said demand for the metal in the
world's biggest gold market was "reasonable" as traders took
advantage of a price retreat to stock up ahead of a raft of
festivals and for the spring wedding season. []
Other precious metals tracked gold lower, with silver <XAG=>
at $17.91 an ounce against $18.02. The world's largest silver
ETF, the iShares Silver Trust <SLV>, said its holdings fell 38.9
tonnes on April 5 to 9,178.27 tonnes. []
Platinum group metals, which rallied to their highest since
2008 in the last session, also declined. Palladium <XPD=> was at
$494.50 against $500, down from Monday's two-year peak of
$500.50, which it matched earlier in the day.
Platinum <XPT=> was at $1,679.50 an ounce against $1,705.50,
a 20-month high.
"Both metals have slipped below the psychological levels
overnight on profit taking," said James Moore, an analyst at
TheBullionDesk.com in a note.
"However, we expect dips in both will continue to be viewed
a buying opportunities as increased investment and industrial
demand tighten the supply/demand balance."
The gold-platinum, ratio which shows how many ounces of gold
are needed to buy an ounce of platinum, rose to 1.51 on Monday,
Reuters data showed, its highest since September 2008.
(Reporting by Jan Harvey; Editing by Amanda Cooper)
