* Gold hits record high in euro terms on safe-haven demand
* Gold up despite dollar rise vs euro on Greek fears
* Palladium prices hit 2-year high near $510/oz
* Coming up: US weekly initial jobless claims on Thursday
(Recasts, adds comments, updates prices, changes byline,
dateline to NEW YORK from LONDON)
By Frank Tang
NEW YORK, April 6 (Reuters) - Gold rose to a one-month high
on Tuesday and euro-priced gold hit a record peak, as currency
uncertainties and worries over smaller euro-zone economies
prompted safe-haven buying in the metal.
Palladium climbed to a two-year high, extending its gains
above $500 an ounce, driven by strong investment demand due to
an improving auto-sector outlook.
Bullion's gains in the face of a stronger dollar indicate
the inverse relationship between the metal and the U.S.
currency will occasionally break down, if risk-averse investors
pile into gold due to related to economic jitters, traders
said.
"People are still worried about the euro and the Greece
situation, and gold is partially getting support from the
economic recovery as people are looking to get ahead of the
inflationary trade," said Zachary Oxman, managing director of
TrendMax Futures.
Oil prices inched up toward $87 a barrel, rising for a
sixth consecutive session, as recent positive economic data
boosted futures to a fresh 18-month high.
Gold tends to track crude prices, as the metal can be
bought as a hedge against oil-led inflation. []
Spot gold <XAU=> was at $1,135.05 at 3:53 p.m. EDT (1953
GMT), against $1,129.70 late in New York on Monday. It hit a
session high $1,138.40 an ounce, its firmest since March 5.
U.S. June gold futures <GCM0> on the COMEX division of the
NYMEX settled up $2.20 at $1,136 an ounce.
Bullion's strength in terms of euro also showed underlying
currency concerns.
Euro-priced gold <XAUEUR=R> rose to a record 851.04 euros
an ounce, against 837.68 late on Monday.
The euro declined broadly as reports that Greece wanted to
amend a European Union aid deal rekindled fear about its
ability to resolve its debt crisis. []
Indian dealers said demand for the metal in the world's
biggest gold market was firm as traders took advantage of a
price retreat to stock up ahead of a raft of festivals and for
the spring wedding season. []
"With gold doing well on the crosses and with good physical
demand in India and China, there is still a group who are
looking at gold as a currency," said Simon Weeks, head of
precious metals at the Bank of Nova Scotia.
PALLADIUM HITS TWO-YEAR HIGH
Among other commodities, palladium <XPD=> also rose to
two-year highs at $508.50 an ounce against $500, boosted by
expectations demand will be strong this year from carmakers --
who account for more than half of palladium consumption -- and
investors.
Platinum <XPT=> was at $1,699.50 an ounce against $1,703.
"We remain tactically bullish both metals this year,
expecting their price increases to outstrip those for gold,"
said UBS analyst Edel Tully in a note.
The gold-platinum ratio which shows how many ounces of gold
are needed to buy an ounce of platinum, reached 1.51 on
Tuesday, Reuters data showed, matching the previous session's
level, its highest since September 2008.
Among other precious metals, silver <XAG=> was at $17.95 an
ounce against $18.02, as the market took a breather and tracked
the decline of other industrial metals.
Close Change Pct 2009 YTD
Chg Close % Chg
US gold <GCM0> 1136.00 2.2 0.2 1096.20 3.6
US silver <SIK0> 17.931 -0.187 -1.0 16.845 6.4
US platinum <PLN0> 1704.50 -5.30 -0.3 1471.00 15.9
US palladium <PAM0> 508.50 0.50 0.1 408.85 24.4
Prices at 3:36 p.m. EDT (1936 GMT)
Gold <XAU=> 1135.55 5.85 0.5 1096.35 3.6
Silver <XAG=> 17.96 -0.06 -0.3 16.84 6.7
Platinum <XPT=> 1698.00 -7.50 -0.4 1465.50 15.9
Palladium <XPD=> 504.00 4.000 0.8 405.50 24.3
Gold Fix <XAUFIX=> 1132.75 8.75 0.8 1104 2.6
Silver Fix <XAGFIX=> 17.92 23.00 1.3 16.99 5.5
Platinum Fix <XPTFIX=> 1700.00 17.00 1.0 1466 16.0
Palladium Fix<XPDFIX=> 504.00 8.00 1.6 402 25.4
(Additional reporting by Jan Harvey in London, Editing by Bob
Burgdorfer)
