* Euro under pressure after Bernanke spooks currency market
* Stocks, commodities bounce back after losses
* SPDR ETF sees biggest one-day inflow since Feb. 2009
(Updates prices, adds comment)
By Jan Harvey
LONDON, May 26 (Reuters) - Gold rose in on Wednesday as
volatility in the currency markets and fears about the outlook
for the euro prompted buying of the precious metal as a haven
from risk.
Interest in physical gold remained high, with holdings of
the world's largest gold exchange-traded fund, New York's SPDR
Gold Trust <GLD>, rising 30.4 tonnes on Tuesday to a record
1,267.3 tonnes, its biggest one-day inflow since Feb. 12, 2009.
Spot gold <XAU=> was bid at $1,213.55 an ounce at 1509 GMT,
against $1,200.10 late in New York on Tuesday. U.S. gold futures
for June delivery <GCM0> on the COMEX division of the New York
Mercantile Exchange rose $16.90 to $1,214.90 an ounce.
Prices are recovering after falling 4.5 percent last week as
concern over the euro zone's sovereign debt crisis sparked
selling of assets seen as higher risk, like stocks and
commodities.
"Once the correction had run its course, buyers felt more
comfortable about jumping in again," said Ole Hansen, senior
manager at Saxo Bank. "ETF holdings still making new highs is
also supporting the move."
"Gold will be well supported as debt fears and Korea won't
go away, especially if the debt crisis turns into another
banking crisis."
Geopolitical concerns centred on the Korean peninsula, where
tensions are increasing, were cited by some analysts as
supportive for gold. []
"At the moment, not only financial jitters but also
geopolitical concerns over what could be happening in Korea are
also (helping gold)," said Commerzbank analyst Eugen Weinberg.
The euro <EUR=> came off lows after earlier falling towards
a four-year trough versus the dollar after Federal Reserve
Chairman Ben Bernanke raised the possibility that its dollar
funding facility would not last forever, lifting risk aversion.
Speaking in Tokyo, Bernanke said dollar swap lines, which
were reinstated as the Greek debt crisis escalated, played an
important role in stabilising markets, but that the Fed did not
want to provide a permanent service. []
COMMODS, EQUITIES REBOUND
Commodity and equity markets rose, however, rebounding from
previous losses. European equities bounced back from nine-month
lows hit a day earlier, extending gains after U.S. durable goods
data beat expectations. [] []
Oil climbed nearly 3 percent after a report showing a drop
in U.S. gasoline stockpiles, while industrial metals like
copper, aluminium and zinc climbed. [] []
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For a graphic showing the price performance of various
commodities this year, click on:
http://graphics.thomsonreuters.com/10/CMD_PRFG0510.html
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Gold is also picking up momentum as ETFs continue to buy
bullion. The 108-tonne inflow into the SPDR fund this month
alone is worth some $4.179 billion.
"The combination of factors has seen investors shift money
out of equities and riskier assets, towards the safe havens of
gold and certain government bonds," Standard Bank said in a
research note.
Platinum <XPT=> was at $1,525 an ounce against $1,515.50,
while palladium <XPD=> was at $447.00 against $436. Spot silver
<XAG=> was bid at $18.27 an ounce against $17.86.
"We expect the volatile trade to continue short-term (in
platinum group metals) as fund/speculative players are still
sitting on substantial longs while investors have used the dips
to increase their exposure," said TheBullionDesk.com analyst
James Moore.
(Additional reporting by Pratima Desai; editing by Sue
Thomas)
