* Markets await fresh news on debt-laden Greece
* Oil prices slip back below $82/barrel
(Updates prices, adds comment)
By Jan Harvey
LONDON, March 19 (Reuters) - Gold eased on Friday as
persistent weakness in the euro kept the metal under pressure,
but remained in a narrow range as haven demand linked to fears
over the outlook for debt-laden Greece underpinned prices.
Spot gold <XAU=> was bid at $1,123.15 an ounce at 1411 GMT,
against $1,125.45 late in New York on Thursday. U.S. gold
futures for April delivery <GCJ0> on the COMEX division of the
New York Mercantile Exchange eased $4.20 to $1,123.30 an ounce.
The metal has stuck to a tight $1,120-$1,126.50 range,
awaiting further impetus, as a 0.5 percent drop in the
euro-dollar <EUR=> was offset by signs of further jitters over
Greece's fiscal health.
"Yields are rising again on Greek government debt, which is
helping (gold), but at the same time the dollar seems to have
found its footing again, which is pulling in the opposite
direction," said Saxo Bank senior manager Ole Hansen.
The euro slipped to a one-week low on Friday, pressured by
nagging concerns about Greece's deficit problems, as traders
waited to see if Athens can secure aid from euro zone members at
a summit next week. []
The single currency has fallen 5 percent versus the dollar
this year as investors fret over the outlook for Greece. The
country said on Thursday it cannot achieve promised deficit cuts
if its borrowing costs remain so high, and may have to call in
the IMF. []
Strength in the dollar usually hurts gold as it cuts the
metal's appeal as an alternative asset. However, euro zone
sovereign debt issues have helped boost haven buying of gold,
helping it ride out the dollar's recovery.
"Gold has been resilient against dollar strength, which is
actually a good sign," said Commerzbank analyst Eugen Weinberg.
"As long as we are trading above $1,120, we will be pretty
much rangebound," he added. "Should prices drop below there, we
could see some downward pressure developing, but at the moment
we are seeing a sideways move on gold."
DEMAND OUTLOOK POSITIVE
Expectations physical demand will recover this year as
prices stabilise after last year's volatility are also
underpinning the market, analysts said.
A senior official at the World Gold Council said on Thursday
that global gold demand was expected to rise in 2010 after a
fall last year, with economic recovery driving jewellery demand
and fuelling investor appetite for bullion. []
From a technical perspective, gold is facing few immediate
pressures, traders said. "Gold is looking very ordinary near the
middle of our multi-week range of $1,099 to $1,145,"
ScotiaMocatta said in a note.
Meanwhile oil slipped below $82 a barrel on Friday as the
dollar strengthened against the euro on worries over Greece's
debt problems, and after an industry report suggested OPEC
exports were rising. []
Gold tends to track crude prices, as the metal can be bought
as a hedge against oil-led inflation.
Silver <XAG=> was at $17.32 an ounce against $17.35.
"We continue to expect silver prices to draw upside momentum
(from) gold prices rather than finding support via its own
supply and demand dynamics," Barclays Capital said in a note.
"Even though we expect industrial activity to support the
demand picture for silver, the metal's price trajectory
continues to rest in the hands of investors."
The bank said it expects growth in mine supply to keep
the market balance in surplus in 2010.
Among other precious metals, platinum <XPT=> was bid at
$1,616 an ounce against $1,627, while palladium <XPD=> was at
$476 an ounce against $475 an ounce.
(Editing by Sue Thomas)
