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PRECIOUS-Factors To Watch on July 1

Published 07/01/2011, 02:34 AM
Updated 07/01/2011, 02:36 AM
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LONDON, July 1 (Reuters) - Gold prices held just below $1,500 an ounce in Europe on Friday, little changed from a week before as Greece's approval of a key austerity package diminished the precious metal's appeal as a haven from risk, although slight gains in the euro lent support.

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PRICES

* Spot gold was bid at $1,497.94 an ounce at 0629 GMT compared with $1,499.60 late in New York on Thursday.

* Silver was at $34.37 from $34.65.

* Platinum was at $1,704.50 from $1,720.15.

* Palladium was at $748.25 from $752.25.

DATA/EVENTS

* German manufacturing PMI for June, 0753 GMT.

* Euro zone Markit manufacturing PMI for June, 0758 GMT.

* Euro zone unemployment for May, 0900 GMT.

* U.S. Thomson Reuters/Univ Of Mich June final consumer sentiment, 1355 GMT.

* U.S. construction spending for May, 1400 GMT.

* U.S. ISM manufacturing index for June, 1400 GMT.

* U.S. Economic Cycle Research Institute (ECRI) releases weekly index of economic activity for June 24, 1430 GMT.

MARKET NEWS

* The euro's advance against the dollar lost momentum on Friday after a rally this week as the market focus shifted to upcoming economic data, with Greece looking set to secure emergency funds and avert imminent default.

* Oil prices fell after data from China showed factory output grew at its slowest pace in 28 months, raising concerns about sluggish fuel demand from the world's second largest importer.

* Asian equities edged higher, lifted by receding fears of a default by Greece and encouraging data from the U.S. overnight.

* European stock index futures pointed to a stronger open for equities on Friday, after shares hit a near-one month high a day earlier, with focus likely to be on manufacturing data from both sides of the Atlantic for clues on the health of the economy.

* German bonds edged higher on Friday as uncertainty over Greece's ability to implement the austerity measures approved by its parliament this week inspired investors to buy back into a cheapened market.

FUNDAMENTALS

* Holdings of the iShares Silver Trust, the world's largest silver-backed exchange-traded fund, dipped by 1.4 million ounces or nearly 0.5 percent on Thursday, the fund said.

TECHNICALS

* Gold support was at $1,495 an ounce and resistance at $1,509. The 14-day RSI was at 35.7.

* Silver support was at $34.39 an ounce and resistance at $34.76. The 14-day RSI was at 41.5.

* Platinum support was at $1,698 and resistance at $1,740. The 14-day RSI was at 41.2.

For related news and prices, click on the codes in brackets: LME price overview LME aluminium <0#MAL:> LME copper <0#MCU:> Asia physicals COMEX copper futures <0#HG:> Europe physicals Scrap metal prices LME plastics RELATED NEWS AND OTHER TOPICS Base/minor metals news All metals news Metals summary Scrap metals news Index of summaries All commodities news Metals diary Weather news Foreign exchange rates SPEED GUIDES

For Reuters Metals Production Database click on URL below http://mpd.session.rservices.com (Reporting by Jan Harvey)

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