* Record euro plan for Greece fails to impress markets
* Gold in euros, sterling, Swiss franc hit record highs
* Coming up: US factory orders, pending home sales Tuesday
(Recasts, adds comments, updates market activity, adds NEW
YORK to dateline)
By Frank Tang and Veronica Brown
NEW YORK/LONDON, May 3 (Reuters) - Gold rose to a
five-month high on Monday, boosted by safe-haven demand as a
record aid plan for Greece failed to quell wider concerns on a
euro-zone debt crisis.
Financial markets reacted skeptically to 110 billion-euro
($146 billion) EU/IMF bailout for Greece, prompting investors
to switch funds into hard metals assets such as gold.
James Steel, chief commodities analyst at HSBC, said that
more uncertainties about debt-laden Greece and worries that the
crisis would spread to other euro members could support gold in
thin trade. "That has been the key factor behind gold's recent
strength," he added.
Analysts said that gold's underlying strength could be
shown by its defying the dollar's strength against the euro,
which fell below the key $1.32 level due to doubts about
Greece's ability to implement budget cuts.
Spot gold <XAU=> rose to a 2010 high $1,187.41 an ounce,
also firmest since Dec. 4 earlier in the session. It was at
$1,183.30 at 11:01 a.m. EDT (1501 GMT), up from $1,177.25 late
in New York on Friday.
Gold hit record highs in euro <XAUEUR=R>, sterling
<XAUGBP=R> and Swiss franc <XAUCHF=R> terms.
European markets contained a dose of scepticism and traded
almost flat toward Greece's news, even as Wall Street rose 0.5
percent on improved U.S. manufacturing data [],
which also boosted the dollar.
"The financial aid package is only buying time, the
long-term problems still exist. It also seems that market
players had expected a larger package," said Daniel Briesemann,
commodity analyst at Commerzbank. There had been talk of a 120
billion euro ($159.8 billion) package before the weekend.
GOLD UP 6 PCT IN APRIL
U.S. June gold futures <GCM0> also rose toward $1,190 an
ounce in earlier trade, and June was $4.20 higher at $1,184.90
an ounce. Silver <XAG=> took its lead from gold, firming to
$18.66 from $18.59 on Friday.
Trading activity remained fairly thin on Monday with
Britain, Japan, China and Thailand closed on Monday for public
holidays.
Gold gained almost 6 percent in April, its biggest
one-month rise since November, as the credit ratings downgrades
of Greece, Spain and Portugal unleashed a wave of risk
aversion, channeling money into gold.
On technical charts, gold is on a bullish trend towards
$1,261 per ounce.[] Earlier in the session, prices
were less than $50 away from record highs hit late last year at
$1,226.10.
"There is still very strong safe haven demand for gold. It
seems like investors are still nervous about what still might
come despite the package for Greece. I wouldn't rule out that
we might touch new highs in dollar-gold as well," a European
trader said.
In other precious metals, platinum <XPT=> slipped to
$1,722.00 from $1,739.50 quoted late on Friday in New York,
while palladium <XPD=> also fell to $540.50 an ounce from
$551.50.
Both metals have seen as setback in line with risk aversion
across other key commodity markets as investors, worried about
the bottom line effect of the euro zone concerns, backed away
from so-called riskier assets.
The platinum group metals, used mainly to clean auto
emissions, have benefited from expectations for auto sales to
motor out of crisis mode this year.
Prices at 11:05 a.m. EDT (1505 GMT)
Last Change Pct 2009 YTD
Chg Close % Chg
US gold <GCM0> 1184.00 3.30 0.3 1096.20 8.0
US silver <SIK0> 18.680 0.069 0.4 16.845 10.9
US platinum <PLN0> 1727.00 -18.10 -1.0 1471 17.4
US palladium <PAM0> 542.30 -13.45 -2.4 408.85 32.6
Gold <XAU=> 1183.30 6.05 0.5 1096.35 7.9
Silver <XAG=> 18.68 0.09 0.5 16.84 10.9
Platinum <XPT=> 1722.00 -17.50 -1.0 1465.50 17.5
Palladium <XPD=> 538.50 -13.00 -2.4 405.50 32.8
Gold Fix <XAUFIX=> 1179.25 4.00 0.3 1104 6.8
Silver Fix <XAGFIX=> 18.62 47.00 2.6 16.99 9.6
Platinum Fix <XPTFIX=> 1738.00 1.00 0.1 1466 18.6
Palladium Fix <XPDFIX=> 552.00 1.00 0.2 402 37.3
(Additional Reporting by James Regan in Sydney; Editing by
Marguerita Choy)
