* Gold in sterling hits record high
* Platinum hits lowest since end-March
* Coming up: U.S. Fed meeting on Wednesday
(Recasts; updates prices, adds NEW YORK dateline, byline)
By Barani Krishnan and Marie-Louise Gumuchian
NEW YORK/LONDON, June 20 (Reuters) - Gold settled a notch higher on Monday as investors held to it as a safe bet against growing concerns over euro zone finances, while a relatively strong dollar capped gains in the precious metal.
The euro slid against the dollar after the region's finance ministers gave Greece two weeks to approve further spending cuts and tax rises in exchange for another 12 billion euros in emergency loans. [ID:nLDE75I0FM]
The spot price of bullion
Gold priced in sterling
U.S. gold futures' benchmark August contract
"The ultimatum from the European Union to Greece, and concerns there might be a Greek default after all these, is keeping the safe-haven bid going for gold," said Bruce Dunn, vice president at New Jersey-based precious metals dealer Auramet Trading.
"But the dollar has been holding up pretty well too, and that's stopping gold from really making a big run for now."
Robin Bhar, precious metals analyst with Credit Agricole in London, said gold was likely to be stuck in its present range until the Greek bailout was resolved.
"You're not going to get too much movement either way until we get more clarification as to what happens on Greece. The market is hungry for an actual agreement to be signed, sealed and dusted."
On the U.S. front, outlook for both gold and the dollar was fraught with uncertainty as investors await the U.S. Federal Reserve's meeting and decision this week on interest rates.
Financial markets are bracing for the conclusion at the end of June of the Fed's "QE2" program, a cheap-money policy credited with boosting stocks but blamed for sky-high commodities prices and a weak dollar. [ID:nN11277563]
"Investors will be trying to see how far or how high the bar for the next round of quantitative easing will be. If this bar is actually lowered, then I think it will be beneficial for gold," said Ong Yi Ling, investment analyst at Phillip Futures in Singapore.
"If it is high, then I think gold will still remain in its current range bounds that we are seeing. I don't think they will do QE3 now." <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
For a 24-hour gold technical outlook: http://graphics.thomsonreuters.com/WT1/20112006090855.jpg ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
IMF WARNING
Recent gains in gold were driven by debt problems in Europe, inflation fears in China following strong economic data and worries about a U.S. economic slowdown.
The International Monetary Fund cut its forecast for U.S. economic growth and warned Washington and debt-ridden European countries that they are "playing with fire" unless they take immediate steps to reduce their budget deficits. [ID:nN17184428]
Jewellers in Indonesia have started making inquiries for gold ahead of the fasting month of Ramadan in August, and those in Hong Kong look happy to buy on dips. But volatile bullion prices have also scared off investors in Japan, dealers said. [ID:nL3E7HK11B]
Data last week from the U.S. Commodity Futures Trading Commission showed money managers cutting their bullish bets in gold futures and options after raising them in the past three weeks, as bullion prices fell. [ID:nN17262661]
Silver
Platinum