* Dollar falls after Singapore move, corporate earnings
* Technical picture for gold seen as stronger after high
* Palladium hits 2-yr high; market balance seen tightening
(Updates prices, adds comment)
By Jan Harvey
LONDON, April 14 (Reuters) - Gold rose on Wednesday as the
dollar dipped after Singapore effectively revalued its currency,
and as upbeat U.S. corporate earnings boosted appetite for
currencies seen as higher risk.
The Singapore move was viewed as a mark of confidence in the
economic recovery.
Other precious metals also rose, with palladium hitting a
new two-year high at $548.50 an ounce as investors bet supply
would fail to keep pace with a demand recovery this year.
Spot gold <XAU=> was bid at $1,153.15 an ounce at 1425 GMT,
against $1,150.15 late in New York on Tuesday. U.S. gold futures
for June delivery <GCM0> on the COMEX division of the New York
Mercantile Exchange rose 20 cents to $1,153.60 an ounce.
The dollar's fall boosted interest in gold as an alternative
asset, and made it cheaper for other currency holders. The unit
fell after Singapore tightened monetary policy, and on positive
corporate earnings, including those of JPMorgan Chase <JPM.N>,
which increased investor appetite for riskier assets.
The currency extended losses after data showed sales at U.S.
retailers rose more strongly than expected in March, while CPI
numbers showed inflation pressures remain muted. []
"Gold has been heavily driven by the currencies," said
Daniel Major, an analyst at RBS Global Banking & Markets.
He said the benign inflation reading was also reassuring
investors that U.S. interest rates may stay at their current
record lows for an extended period.
"The CPI number out of the United States today was pretty
much in line with consensus," he said. "That is probably going
to instil more confidence in the lower-for-longer (view)."
Low interest rates reduce the opportunity cost of holding
non-interest bearing gold.
The metal's rise to four-month highs at the beginning of the
week on the back of the euro's recovery against the dollar has
also shored up the technical picture for gold, analysts said.
"Gold has achieved the level it has achieved based on
fundamentals, and now the technical picture is looking good,"
said Peter Hillyard, head of metals sales at ANZ Bank. "The
$1,140-1,145 level is clearly showing itself as good support."
For Reuters' technical analysis, click on [].
BULL RUN 'NEAR PEAK'
In an interview ahead of the launch of the metals
consultancy's annual report, GFMS chairman Philip Klapwijk said
gold is near the final phase of its 10-year bull run, but prices
could still reach $1,300 an ounce in 2010. []
Gold investment demand in 2009 surpassed jewellery buying
for the first time since 1980 as investors flocked to the metal
as a safe store of value as the global recession bit, GFMS said.
Indicators of physical gold demand were positive, with the
president of the Bombay Bullion Association saying March imports
to major bullion consumer India jumped to 27.7 tonnes from 4.8
tonnes a year before. []
Holdings of the world's largest gold-backed exchange-traded
fund, New York's SPDR Gold Trust <GLD>, were unchanged at record
highs on Tuesday. []
Among other precious metals, palladium <XPD=> hit another
two-year high on Wednesday.
"(The) improving economic outlook and strong growth in auto
sales in Asian markets support demand for palladium," said
Fairfax investment bank in a note. "Around 54 percent of metal
production is used in autocatalyst production."
Palladium <XPD=> was at $538.50 an ounce against $526, while
platinum <XPT=> was at $1,720.50 an ounce against $1,714. Silver
<XAG=> was bid at $18.33 an ounce against $18.18.
Prices of minor precious metals also rose on Wednesday, with
rhodium hitting its highest since October 2008 at $2,875 an
ounce, ruthenium its highest since December 2008 at $190 an
ounce, and iridium <IRID-LON> a 12-year high at $520 an ounce.
Traders said a mixture of firmer industrial demand and some
speculation was behind the rise in the metals.
(Editing by Keiron Henderson)
