Gold hits 4-mth high

Both the jump by the euro jump and high investment demand helped push the commodity.

Spot gold prices rose to their highest in four months on a jump in the euro and investment demand,while platinum and palladium hit multi-month highs on expectations of strengthening industrial demand as the economy recovers.

FUNDAMENTALS

Spot gold climbed as high as 1,168.70 per ounce early in Asian trade on Monday,its highest since Dec. 4,and stood at 1,165.35 as of 0014 GMT,up 0.5 percent from New York8217;s notional close of 1,159.00.

Gold prices were underpinned by investors fleeing to safety amid lingering concerns about Europe8217;s financial stability,symbolised by Greece8217;s debt crisis. The metal ended last week up about 3 percent,the biggest gain since the week of Jan. 10.

U.S. gold futures for June delivery inched up 0.4 percent at 1,166.40 per ounce compared to 1,161.90 an ounce on the COMEX division of the New York Mercantile Exchange.

The world8217;s largest gold-backed exchange-traded fund,the SPDR Gold Trust,said its holdings hit an all-time high of 1,141.041 tonnes as of April 9,topping the previous record hit the day before.

Spot palladium rose to a two-year high above 511.50,while spot platinum marked a 20-month high above 1,724.00.

Silver rose as high as 18.53 an ounce,the highest since Jan. 20.

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Noncommercial net long U.S. gold futures positions jumped 17 percent to 203,466 contracts in the week that ended on April 6 from 173,766 contracts a week earlier,the biggest percentage rise in eight months and the highest level in a month.

MARKET NEWS

Nikkei was up 0.8 percent on Monday.

U.S. stocks rose on Friday with the Dow surpassing 11,000 for the first time in a year-and-a-half after Chevron8217;s upbeat outlook and wholesale inventories data reinforced bets on an improving economy.

The euro jumped to its highest in nearly a month in early Asian trade on Monday,after European Union leaders agreed to a rescue package for Greece which traders said could drive investors to cover short positions.

Oil prices rose above 85 a barrel on Monday,after falling for the third day in a row on Friday due to bloated inventories stoking concerns about weak demand.

DATA EVENTS

The following data is expected on Monday:

8211; U.S. Federal budget for March. 1800 GMT

8211; UK BRC March retail sales survey. 2301 GMT

8211; UK March RICS house price survey. 2301 GMT