* Euro climbs 1 pct versus dollar, recovering from 7-wk low
* Concerns over Ireland recede as EU-IMF rescue package eyed
* U.S. palladium ETP holdings hold near record
(Updates throughout, changes dateline, pvs SINGAPORE)
By Jan Harvey
LONDON, Nov 18 (Reuters) - Gold rose more than 1 percent in
Europe on Thursday, recovering from four sessions of losses, as
a drop in the value of the dollar versus the euro helped
commodity prices to recoup some of this week's hefty losses.
Spot gold <XAU=> was bid at $1,356.40 an ounce at 1041 GMT,
against $1,335.70 late in New York on Wednesday. U.S. gold
futures for December delivery <GCZ0> rose $19.20 an ounce to
$1,356.10.
"Having held $1,330, and with the dollar a bit weaker and
the euro recovering a bit, we are just following the trend back
up again," said Simon Weeks, head of precious metals at the Bank
of Nova Scotia.
Raw materials like gold, platinum, copper and crude oil had
all seen heavy losses this week on talk of a possible Chinese
interest rate hike, and as concerns over debt levels in the euro
zone pressured the single currency against the dollar.
But commodities bounced back on Thursday as the euro rose 1
percent against the dollar amid speculation a Spanish government
bond auction would see good demand, and optimism that aid would
soon be granted to debt-laden Ireland. []
Ireland's central bank chief said on Thursday he expected
the country to receive tens of billions of euros in loans from
European partners and the IMF to help shore up its shattered
banks and stabilise the economy. []
Oil prices rebounded from four-week lows and base metals
rose on Thursday as dollar weakness and cautious optimism about
Ireland's debt crisis rekindled interest in commodities, while
European equities climbed for a second straight day. [] []
Prior to its latest correction gold climbed 30 percent this
year to a record $1,424.10 an ounce, lifted by concern over
sovereign debt and the stability of the currency markets, before
being hit heavily this week by weakness in other commodities.
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For a graphic showing the relative price performance of
major commodities this year, click: http://r.reuters.com/baf29p
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CURRENCIES STILL VOLATILE
"At one point, everyone was selling commodities," said
Weeks. "People had been good buyers, everyone had put risk back
on the books, and suddenly they got panicky about China and
started liquidating, and gold got caught up in that."
"But I do think it will reassert itself on the crosses at
some point as a currency, because clearly people don't like the
currency markets. Generally speaking, whichever currency you are
looking at people aren't really that comfortable."
Among other precious metals, silver <XAG=> rose to $26.42 an
ounce against $25.61, though it remains well below the 30-year
high of $29.33 an ounce it hit earlier in November.
The world's biggest silver exchange-traded fund, the iShares
Silver Trust <SLV>, said its holdings climbed to a record
10,773.56 tonnes on Wednesday, from 10,718.82 tonnes on Nov 10.
Metals research and consulting firm GFMS said on Wednesday
that silver is likely to rise above $30 an ounce and average $28
in 2011, lifted by strong investment buying and recovering
fabrication demand.
Platinum <XPT=> was at $1,651.49 an ounce against $1,633.49,
while palladium <XPD=> was at $679.97 against $660.25.
Palladium holdings of ETFS Physical Palladium Shares, the
physically-backed exchange-traded product operated by a unit of
London't ETF Securities, held at a record high of 920,362 ounces
on Wednesday, the company's website showed
Holdings of ETFS Physical Platinum Shares were at 343,132
ounces, their highest since early May.
(Reporting by Jan Harvey; Editing by Alison Birrane)
