* Dollar slips as investors eye riskier currencies
* Platinum, palladium helped by stronger European car sales
* iShares silver ETF at record
(Updates prices, highs)
By Jan Harvey and Catherine Bosley
LONDON, Aug 3 (Reuters) - Gold and silver rose to seven-week
highs on Monday, as the dollar's slide to its lowest since
mid-December boosted investors' appetite for hard assets.
Spot gold <XAU=> hit an intra-day high of $961.70 an ounce,
matching the high set on June 11. It was bid at $960.10 an ounce
at 1457 GMT from $953.90 an ounce late in New York on Friday.
U.S. gold futures <GCQ9> for August delivery on the COMEX
division of the New York Mercantile Exchange rose $6.70 to
$960.4 an ounce.
"At the moment we're seeing the dollar as the key factor to
movements in the gold market," said Eugen Weinberg, senior
analyst at Commerzbank.
"In the past few months (gold) has gone from being a safe
haven to becoming a dollar play. The dollar right now is so weak
because no one is looking for a safe haven -- because corporate
results are so good and stock markets are performing so well."
Silver was at $14.39 an ounce against $13.89. Earlier it
touched a high of $14.47, the highest since mid-June.
"Silver tracks gold in both directions," Weinberg said.
The dollar hit a 2009 low versus a basket of currencies,
stung by buoyant risk demand. The dollar index, a gauge of the
U.S. currency's performance against six other major currencies,
fell to its lowest since December. []
Appetite for risk was boosted by rising stock markets.
European shares hit a nine-month high, as financials advanced
after earnings results from Europe's biggest bank HSBC cheered
investor sentiment. [] []
Rising equity markets also boosted interest in oil, with
prices hitting a one-month high. Stronger crude prices support
interest in gold as a hedge against oil-led inflation. []
SILVER INFLOWS
Silver took further support from fresh inflows into
exchange-traded funds last week.
The largest silver ETF, the iShares Silver Trust, said its
holdings rose to a record 8,828 tonnes on Friday, while
Switzerland's Zurich Cantonal Bank said its silver holdings rose
1.929 million ounces last week.
Investment demand for gold and jewellery buying remain
lacklustre, however. Holdings of the largest gold ETF, the SPDR
Gold Trust, fell nearly 50 tonnes in July. []
ETFs issue securities backed by physical commodities, and
constituted a big source of gold demand in the first quarter.
Jewellery demand was also weak as Indian consumption
softened on the back of higher prices. "Traders are waiting for
lower prices," said one dealer.
Among other precious metals, platinum was at $1,227 an ounce
against $1,207.50. Earlier platinum hit $1,231.50 an ounce, the
highest since June 15, while palladium was at $267.50 against
$261.50. Both metals are used in autocatalysts.
Government measures to boost demand for new cars supported
European car sales in July, data showed, with French sales
rising 3.1 percent, helping to lift both platinum and palladium
which are chiefly used in automobile production. []
"We view the development in vehicle sales as a positive
signal," Standard Bank said in a note. "We view this as a
bullish signal for platinum, palladium, aluminium demand."
(Additional reporting by Pratima Desai; editing by James Jukwey)
