* Spot palladium hits 18-mth high, platinum hits 17-mth peak
* Gold pressured by firmer dollar
* Holdings by SPDR Gold Trust <GLD> steady
(Adds quotes, updates prices)
By Michael Taylor
LONDON, Jan 19 (Reuters) - Platinum and palladium prices hit
their highest levels since mid-2008 on Tuesday, with investment
demand fuelled by the recent launch of exchange-traded funds in
the United States.
By contrast gold struck a subdued note, with upside progress
restricted by currency fundamentals. The dollar strengthened
against the euro as German investor sentiment soured, with
concern also remaining about Greece's finances. []
Spot platinum <XPT=> rose to $1,647.50 per ounce, its
highest since August 2008, and was at $1,625 an ounce by 1606
GMT, against $1,612 quoted late on Monday.
Palladium <XPD=> hit a high of $461.50 an ounce, a level not
seen since July 2008. It later eased back to trade at $458
versus $457.50 as the dollar gained traction.
Gold <XAU=> was bid at $1,132.80 an ounce against $1,132.50
an ounce on Monday. U.S. gold futures for February delivery
<GCG0> were at $1,133.00 per ounce, up 0.2 percent.
A U.S. subsidiary of London's ETF Securities launched the
United States' first platinum and palladium-backed ETFs earlier
this month, and uptake has been healthy. []
"Gold came off a little bit with the stronger dollar but
there is some good physical demand which stopped it from falling
further," said Michael Kempinski, a trader at Commerzbank. "The
euro/dollar gives more potential for the downside."
"The focus is definitely on the new (platinum and palladium)
ETFs, that's the main driver," he added. "Gold is in a trading
range...the safe haven-buying is over right now, so it's more
about the ETFs for the PGMs (platinum Group Metals)."
Analysts said appetite for the funds was having a
disproportionate effect on the platinum and palladium markets,
which are much smaller in volume terms than gold.
In addition, signs the global economy is steadying and
expectations central banks may start draining ample funds from
the banking system or raising interest rates later in the year
are also prompting investors to buy the strategic platinum group
metals.
TECHNICAL UPTREND?
Platinum's rise may soon stall as the market consolidates
its overbought position, but the technical uptrend and improving
fundamentals are likely to eventually carry prices to record
highs, according to analysts. []
"The fundamentals for both of these metals (platinum and
palladium) appear much brighter this year as the launch of the
products coincides with a period of expected growth in auto and
industrial demand for both of the PGMs," Barclays Capital said
in a note.
Gold prices were steady, with a rise in the dollar capping
gains. Strength in the U.S. unit curbs gold's appeal as an
alternative asset and makes dollar-priced commodities more
expensive for holders of other currencies.
"Bullion continues to underperform when compared to other
precious metals," said Andrey Kryuchenkov, an analyst at VTB
Capital. "Bullion has been gradually decoupling from the
precious metals sector."
"Gold continues to trade off the greenback," he added. "We
will be witnessing a comeback to more fundamental based trading
this year."
The world's largest gold-backed exchange-traded fund, SPDR
Gold Trust <GLD>, said its holdings stood at 1,112.836 tonnes as
of Jan. 18, unchanged from the previous day. []
Holdings of the trust, the world's sixth largest holder of
gold ahead of China, Japan and Switzerland, have declined nearly
21 tonnes so far this year, compared to a rise of some 15 tonnes
in the same period of 2009. []
Meanwhile gold traders in major bullion consumer India
remained on the sidelines on Tuesday as high prices put off
buyers, dealers said.
Among other precious metals, silver <XAG=> prices were at
$18.62 an ounce versus $18.61 an ounce late on Monday.
(Reporting by Michael Taylor; Editing by Veronica Brown)
