* Euro climbs versus dollar, climbing off 7-wk low
* Worry over Ireland recedes as EU-IMF rescue package eyed
* U.S. palladium ETP holdings hold at record high
* Coming up: U.S. preliminary GDP data on Tuesday
(Recasts, updates prices, market activity, adds second
byline/dateline)
By Frank Tang and Jan Harvey
NEW YORK/LONDON, Nov 18 (Reuters) - Gold rose more than 1
percent on Thursday, breaking its longest stretch of
consecutive declines in almost six months, as anticipation of
an emergency loan for Ireland boosted the euro and lured
investors back into commodities.
Silver and palladium each rose about 5 percent, and
commodities bounced broadly as the euro rallied against the
dollar amid optimism Ireland will get loans to ease its banking
and debt crisis. []
"Precious metals are rebounding today along with other
commodities, mainly as the dollar weakens relative to a number
of currencies," said Anne-Laure Tremblay, BNP Paribas precious
metals strategist.
Gold, platinum, copper and crude oil had all declined
sharply this week as talk of a possible Chinese interest rate
hike prompted caution about the outlook for raw materials
demand, and as concerns over debt levels in the euro zone
pressured the single currency against the dollar.
Gold's inverse relation to the U.S. dollar has strengthened
in the last week, indicating the metal has gained traction as
the euro has bounced off recent seven-week lows.
Spot gold <XAU=> rose 1.3 percent to $1,352.50 an ounce at
1:48 p.m. EDT (1848 GMT), but down from an intraday high of
$1,359.15 after strong regional U.S. manufacturing data helped
the dollar pare losses. []
U.S. gold futures for December delivery <GCZ0> settled up
1.2 percent at $1,353.
Silver <XAG=> rose 4.7 percent to $26.82 an ounce, though
it remains well below the 30-year high of $29.33 an ounce it
hit earlier in November.
COMEX volume was lighter than the last several days when
the markets sold off. Gold futures volume was about 3 percent
lower than their 30-day average, while silver turnover was 5
percent below its average.
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 stabilize the economy. []
"It's not just a currency thing. It's got to do with the
belief that governments aren't in control of the economic and
financial situation. That's been supportive for gold
investment," said Matthew Turner, an analyst with Mitsubishi.
Gold has risen by over 20 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.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Graphic on relative performance of major commodities:
http://r.reuters.com/baf29p
Column: Gold/platinum ratio indicates investors' gloom:
[]
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
CURRENCIES STILL VOLATILE
"At one point, everyone was selling commodities," said
Simon Weeks, head of precious metals at the Bank of Nova
Scotia. "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," he
said.
Platinum <XPT=> climbed 1.7 percent to $1,661.49 an ounce,
while palladium <XPD=> rose 5 percent to $692.97.
Palladium holdings of ETFS Physical Palladium Shares, the
physically-backed exchange-traded product operated by a unit of
London's 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.
Industrial buying of palladium is expected to outstrip call
for platinum. "Palladium is seen stronger than platinum in
terms of auto demand," Fairfax analysts said in a note.
Prices at 1:59 p.m. EST (1859 GMT)
LAST/ NET PCT YTD
CLOSE CHG CHG CHG
US gold <GCZ0> 1353.00 16.10 1.2% 23.4%
US silver <SIZ0> 26.834 1.323 0.1% 59.3%
US platinum <PLF1> 1663.90 23.00 1.4% 13.1%
US palladium <PAZ0> 695.50 40.65 6.2% 70.1%
Gold <XAU=> 1353.40 17.70 1.3% 23.4%
Silver <XAG=> 26.90 1.29 5.0% 59.7%
Platinum <XPT=> 1661.74 28.25 1.7% 13.4%
Palladium <XPD=> 692.97 32.72 5.0% 70.9%
Gold Fix <XAUFIX=> 1350.25 -6.50 -0.5% 22.3%
Silver Fix <XAGFIX=> 26.57 137.00 5.4% 56.4%
Platinum Fix <XPTFIX=> 1656.00 2.00 0.1% 13.0%
Palladium Fix <XPDFIX=> 684.00 1.00 0.1% 70.1%
(Additional reporting by Amanda Cooper in London; Editing
by David Gregorio)
