* Dollar jumps 1 pct versus euro to 1-1/2 week high
* Investors fret over prospect of Greek debt restructuring
* China reserve requirement hike puts inflation in spotlight
(Updates prices)
By Jan Harvey
LONDON, April 18 (Reuters) - Gold eased from record highs on
Monday as the dollar rose 1 percent versus the euro, but prices
took support from worries over euro zone debt and inflation in
Asia after China opted to raise reserve requirements again.
Spot gold <XAU=> rose as high as $1,488.50 and was bid at
$1,481.10 an ounce at 1123 GMT, against $1,483.75 late in New
York on Friday. U.S. gold futures for June delivery <GCv1> eased
$4.30 an ounce to $1,481.70, off a record $1,489.70.
The euro fell against the dollar on Monday and bonds issued
by the euro zone's lower-rated sovereigns weakened on increased
talk of a possible Greek debt restructuring and uncertainty over
Portugal's bailout. [] []
A consequently stronger dollar reined in gains in
dollar-priced gold, which became more expensive for other
currency holders, but concerns over the outlook for the euro
zone are in themselves gold-supportive.
The strong showing of an anti-euro party in a Finnish
election on Sunday has heightened the risk of a fresh obstacle
to European Union plans to bail out Portugal and fortify the
euro, analysts said. []
"The ongoing European periphery issues aren't attracting as
strong a reaction from the market as they did originally, but
clearly Spain is the next concern, and that is feeding into
(gold)," said RBS analyst Daniel Major.
"(There was) another increase in the Chinese reserve
requirement ratio over the weekend," he added. "It certainly
looks as though there are signs that inflation is uncomfortably
high within the Asia region. Gold has a role as a perceived
inflation hedge."
China raised banks' required reserves on Sunday for the
fourth time this year, extending the fight against stubbornly
high inflation. []
European shares also fell as nervousness ahead of key
quarterly earnings results and lingering worries about indebted
euro zone countries lowered investors' risk appetite. []
OIL EASES FROM HIGHS
Meanwhile, oil prices slid on fears that high prices were
hurting demand, after main oil exporter Saudi Arabia said the
market was over-supplied, when announcing a cut in output. []
Crude oil remains near multi-year highs, however, supported
by unrest in the Middle East and North Africa. Elevated oil
prices tend to support gold, which is often seen as a hedge
against oil-led inflation.
"Gold prices are more sensitive to commodity price movements
than to broader inflation," said HSBC analyst James Steel in a
note. "The recent gains in inflation across the OECD and
emerging world are in those categories -- food and fuel -- that
gold is most likely to react positively to."
Among other precious metals, silver <XAG=> was bid at $42.83
an ounce against $42.99, having earlier touched a new 31-year
high at $43.35 an ounce. Silver has been the best-performing
precious metal so far this year, up 39 percent since January.
However, analysts say the metal, which has benefited from
strong investment flows and perceptions that recovering
industrial demand will put a floor in prices, may be overpriced
at current levels.
"When we were visiting U.S. clients at the beginning of
March, the bullish mood towards silver was very evident," said
UBS in a note. "Now, caution and confusion abound."
"While everyone can understand silver's direction, no-one
really grasps the extent of the move. The consensus opinion is
that silver has outpaced logic and a correction is overdue. Last
week clients started to bank profits and explore downside
protection strategies."
Platinum <XPT=> was at $1,779.74 an ounce against $1,782.70,
while palladium <XPD=> was at $750.97 against $760.55.
(Reporting by Jan Harvey; Editing by Anthony Barker)
