* Safe-haven demand eases after signs of stabilization
* PGMs boosted by supply concerns, investment demand
* SPDR gold ETF hits record levels on Wednesday
* Coming up: U.S. first-quarter GDP data on Friday
(Adds comments, closing prices, changes byline, dateline,
previously LONDON)
By Frank Tang
NEW YORK, April 29 (Reuters) - Gold prices were largely
flat on Thursday after hitting near five-month highs in the
previous session, as a flight to safety fizzled amid hopes that
a euro-zone debt crisis would be dealt with swiftly.
Strong investment demand driven by renewed supply concerns
from top producer South Africa, and a Wall Street rally amid
better economic sentiment, boosted platinum group metals
(PGM).
An upbeat outlook on the U.S. economy from the Federal
Reserve sharpened appetite for riskier assets such as equities
and took some momentum away from gold, analysts said.
Jason Schenker, president of Texas-based Prestige Economics
LLC, said that gold's safe-haven demand was easing on positive
economic data led by better U.S. jobless claims data.
[]
"There has been a flight to quality over the past couple of
days. Today, across a number of different markets, you can see
crude and the dollar easing as the markets are settling in,"
Schenker said.
Spot gold <XAU=> was at $1,168.45 an ounce at 2:54 p.m. EDT
(1954 GMT), against $1,164.45 late in New York on Wednesday.
Gold on Wednesday hit its highest level this year at
$1,174.18 an ounce after Standard & Poor's cut its credit
ratings on Spain, a day after downgrading the ratings for
Greece and Portugal.
U.S. gold futures for June delivery <GCM0> on the COMEX
division of the NYMEX settled down $3 at $1,168.80.
The euro rose for a second straight day on Thursday,
rebounding from a one-year low in the prior session, boosted by
hopes a bailout plan for Greece will be larger than previously
thought and allow it to avoid a debt restructuring. []
"Gold has benefited from the sovereign debt problems, which
reached a head the day before yesterday," said Credit Agricole
analyst Robin Bhar.
"We have had some calmer markets since the first wave of
panic hit the markets then subsided. But it is still supported
by those fears."
Global equities rose as the Fed's more upbeat view of the
U.S. economy eclipsed the euro zone's debt issues, and the U.S.
S&P 500 index marked its largest daily advance in nearly eight
weeks. Oil prices also rose sharply. [] []
[]
INVESTMENT DEMAND UNDERPINS
Traders said that strong performance of gold-backed
exchange traded funds should support the price of the metal.
Investment interest in gold was firm, with holdings of the
world's largest gold exchange-traded fund, the SPDR Gold Trust
<GLD>, hitting a record 1,152.9 tonnes on Wednesday.
[]
Holdings of a London-based gold ETP <PHAU.L>, operated by
London's ETF Securities, rose 29,450 ounces on Wednesday to
3.521 million ounces, their highest level since October last
year.
Among other precious metals, PGM prices climbed on worries
over a potential supply shortfall from top producer South
Africa due to an ongoing electricity crisis.
A senior official from South Africa's power utility Eskom
said he is confident it will be able to meet this year's power
demand, including during the World Cup, but supply will be
tight from 2011-2012 unless new capacity is brought on stream.
[]
Platinum <XPT=> was at $1,729 an ounce against $1,707, and
palladium <XPD=> at $548 against $538.50.
Rising investment interest also boosted PGMs. Holdings of
ETF Securities' U.S. platinum <PPLT> and palladium <PALL> ETFs
exceeded 1 million ounces combined since the funds' inception
in January.
Silver <XAG=> was at $18.47 an ounce against $18.06.
Close Change Pct 2009 YTD
Chg Close % Chg
US gold <GCM0> 1168.80 -3 -0.3 1096.20 6.6
US silver <SIK0> 18.549 0.442 2.4 16.845 10.1
US platinum <PLN0> 1733.70 20.10 1.2 1471.00 17.9
US palladium <PAM0> 549.00 7.10 1.3 408.85 34.3
Prices at 2:56 p.m. EDT (1856 GMT)
Gold <XAU=> 1168.65 4.20 0.4 1096.35 6.6
Silver <XAG=> 18.47 0.41 2.3 16.84 9.7
Platinum <XPT=> 1729.00 22.00 1.3 1465.50 18.0
Palladium <XPD=> 549.00 10.500 1.9 405.50 35.4
Gold Fix <XAUFIX=> 1166.75 -3.25 -0.3 1104 5.7
Silver Fix <XAGFIX=> 18.15 19.00 1.1 16.99 6.8
Platinum Fix <XPTFIX=> 1711.00 10.00 0.6 1466 16.7
Palladium Fix<XPDFIX=> 542.00 4.00 0.7 402 34.8
(Additional reporting by Jan Harvey and Veronica Brown in
London; editing by Jim Marshall)
