* Spot palladium hits 18-mth high, platinum hits 17-mth peak
* Global recovery expectations, ETFs underpin demand for PGMs
* Holdings by SPDR Gold Trust <GLD> steady
By Chikako Mogi
TOKYO, Jan 19 (Reuters) - Spot palladium and platinum hit
fresh multimonth highs on Tuesday, underpinned by healthy demand
after the launch of new U.S.-based exchange-traded funds backed
by the metals, and an improving outlook for the global economy.
Gold edged higher but gains were limited due to a lack of
cues from the dollar in the currency market.
Following the launch of the palladium and platinum funds
earlier this month, these metals have benefited from expectations
that buying interest will remain intact for some time.
In addition, signs of steadying global economies and views
that central banks might start draining ample funds from the
banking system or raise interest rates later in the year are also
prompting investors to buy the platinum group metals (PGM).
"The PGM price development is related to the global economy
and views that the economy is already recovering," said Dick
Poon, manager of precious metals at Heraeus in Hong Kong. "The
ETFs backed by PGMs are also supporting prices."
Investors sold inventories last year when demand was slack,
but they started buying these metals from the second half of
2009, partly because they may need to fill up their stocks, Poon
said.
"With the possibility of an interest rate rise later in the
year, investors may be thinking it's better to buy PGMs now than
later," he said.
Spot platinum <XPT=> rose above $1,626 per ounce to a fresh
17-month high on Tuesday, rising as high as $1,639.00, or up 1.6
percent, from late London trade on Monday.
Spot palladium <XPD=> rose as high as $460.25, the highest
since early July 2008, or up 0.6 percent from late London trade
on Monday.
Gold's rise on Tuesday was muted compared with the PGM price
rally, as the dollar remained directionless while the euro
dictated currency moves on Tuesday.
"There is only so much contagion gold can get from other
metals," said Darren Heathcote, head of trading at Investec
Australia in Sydney.
"Gold is still taking the lead from the U.S. dollar. We
haven't seen much of a movement in gold because there is a lack
of clear direction in the U.S. dollar," he said.
Spot gold <XAU=> inched up 0.3 percent to $1,136.40 per ounce
as of 0615 GMT compared with New York's notional close of
$1,132.50.
New York energy and commodity markets were closed on Monday
for Martin Luther King Jr. Day.
U.S. gold futures for February delivery <GCG0> were at
$1,136.60 per ounce, up 0.5 percent from $1,130.50 on the COMEX
division of the New York Mercantile Exchange on Friday.
The holdings of the world's largest gold-backed
exchange-traded fund, SPDR Gold Trust <GLD>, stood unchanged at
1,112.836 tonnes. []
The euro hit a four-month low against sterling on Tuesday as
sterling drew strength after reports that U.S.-based Kraft Foods
and Cadbury were arranging a deal to create the world's largest
confectionery group. The euro was also pressured by persistent
concerns over Greece's ballooning fiscal deficit. []
Oil prices rose above $78 on Tuesday on expectations that
Chinese economic indicators due this week will signal strong
demand growth from the world's second-largest oil consumer.
China's industrial output probably jumped by 20 percent in
the year to December after November's figure of 19.2 percent, a
Reuters survey showed. That would be the fastest pace since
February 2006.
Precious metals prices at 0609 GMT
Metal Last Change Pct chg YTD pct chg Turnover
Spot Gold 1136.45 3.95 +0.35 3.72
Spot Silver 18.71 0.10 +0.54 11.17
Spot Platinum 1638.00 26.00 +1.61 11.66
Spot Palladium 459.25 1.75 +0.38 13.26
TOCOM Gold 3319.00 -5.00 -0.15 1.84 37191
TOCOM Platinum 4742.00 29.00 +0.62 8.24 21020
TOCOM Silver 55.00 0.30 +0.55 6.38 166
TOCOM Palladium 1330.00 3.00 +0.23 14.16 406
Euro/Dollar 1.4393
Dollar/Yen 90.48
TOCOM prices in yen per gram. Spot prices in $ per ounce.
(Additional reporting by Miho Yoshikawa; Editing by Chris
Gallagher)
