* Gold comes under pressure as dollar swings higher
* Platinum hits highest since July 2008, palladium 2-yr peak
* Positive outlook for car sales prompts buying of PGMs
(Releads, updates prices, adds comment)
By Jan Harvey
LONDON, April 22 (Reuters) - Gold fell in Europe on Thursday
as the dollar rose against the euro, with persistent fears over
Greece pressuring the single currency, while platinum group
metals retreated from earlier multi-month highs.
Spot gold <XAU=> was bid at $1,141.40 an ounce at 1048 GMT,
against $1,145.30 late in New York on Wednesday. U.S. gold
futures for June delivery <GCM0> on the COMEX division of the
New York Mercantile Exchange fell $6.50 to $1,142.30 an ounce.
The euro fell on Thursday after data showing Greece's budget
deficit was worse than expected highlighted concerns the Greek
debt crisis may impact other euro zone countries. []
Such fears sometimes benefit gold as a haven from risk, but
currencies are currently to the fore. In the longer run, concern
over sovereign debt may lift gold, analysts said.
David Wilson, an analyst at Societe Generale, said gold's
correction on Thursday notwithstanding, it had trended higher on
a number of occasions despite a strengthening dollar.
"The relationships and the drivers for gold are changing
over time," he said. "There is enough nervousness out there in
terms of what is happening in Europe to spark some degree of
support for safe-haven assets."
"That is why we are seeing the dollar supported, and for the
same reasons we should see gold supported."
The dollar's move higher also pressured other precious
metals, with platinum retreating from its highest since July
2008 at $1,751.50 an ounce and palladium falling back from a
two-year peak of $569, both reached in Asian trading hours.
For a graphic showing the ratio of platinum to gold prices,
click on:
http://graphics.thomsonreuters.com/gfx/SBrb_20102204103742.jpg
Further gains are forecast for both this year, however.
"Platinum and palladium are being driven by two major points
-- investment demand, which is still quite high, and the
industrial character of the metal at a time when the economy is
recovering," said Commerzbank analyst Daniel Briesemann.
CAR PRODUCTION SEEN RISING
A rise in car production after last year's slump is leading
to more industrial offtake of the metals, especially in China,
but speculation there will be further strong gains later in the
year is also fuelling investment ahead of the curve.
"Investors are still buying platinum and palladium in
expectation of a further increase in demand," said Briesemann.
"If you look at Chinese car sales, they are still showing
growth, so there is certainly real demand."
Platinum and palladium have climbed this year as demand from
carmakers, who account for more than half of consumption,
recovered from last year's slump.
China, where vehicle sales bucked last year's falling trend
to rise 50 percent, has continued to grow, climbing 76 percent
in the first quarter. []
Although the world's biggest carmaker Toyota has been hit by
a credit downgrade after a series of product recalls, other
carmakers have had an upbeat year so far.
Luxury carmaker Daimler <DAIGn.DE> said it doubled first
quarter car sales in China, Hyundai <005380.KS> posted a record
net profit in the period and Peugeot <PEUP.PA> said sales rose
more than a quarter. [] [] []
The platinum and palladium exchange-traded funds launched in
the United States earlier this year are also seeing good demand.
On the supply side of the market, Anglo Platinum <AMSJ.J>,
the world's No. 1 producer of the precious metal, said first
quarter output fell 3 percent as it closed some shafts, but kept
its full-year production target on Thursday. []
Platinum <XPT=> was at $1,732 an ounce against $1,731, while
palladium <XPD=> slipped to $554.50 an ounce.
The market is awaiting the release of a key report on supply
and demand trends from metals consultancy GFMS at 1300 GMT.
Silver <XAG=> was bid at $17.94 an ounce against $18.03.
(Editing by James Jukwey)
