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PRECIOUS-Factors to watch on June 30

Published 06/30/2011, 03:08 AM
Updated 06/30/2011, 03:12 AM
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LONDON, June 30 (Reuters) - Gold held steady on Thursday after two days of gains and after passage of Greece's austerity plan through parliament weighed on the dollar, but low speculative interest and physical demand are seen capping gold's upside in the short term.

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PRICES

* Spot gold was bid at $1,508 an ounce at 0646 GMT compared with $1,511.55 late in New York on Wednesday.

* Silver was at $34.79 from $34.76.

* Platinum was at $1,721.74 from $1,724.00.

* Palladium was at $756.10 from $746.50.

DATA/EVENTS

* Euro zone flash inflation for June is due at 0800 GMT.

* Weekly U.S. jobless claims are due at 1230 GMT.

* Chicago PMI for June is due at 1345 GMT.

* Treasury Secretary Geithner and former President Bill Clinton participate in Q&A on the state of the economy at 2130 GMT.

/DIARY]

MARKET NEWS

* Asian stocks climbed on Thursday as investors breathed a sigh of relief after Greece moved a step closer to avoiding a default by adopting harsh austerity measures, a move that boosted the euro and sparked a broad rebound in risky assets.

* The euro surged to a three-week peak against the dollar on Thursday, swept higher by a wave of stop-loss buying and extending a rally after Greece moved a step closer to securing international aid.

* Brent held above $112 on Thursday, buoyed by tighter U.S. oil stocks and a weaker dollar after an initial favourable vote on austerity measures by Greece's parliament, but concerns that the IEA may decide to release more oil next month capped gains.

* Wall Street closed its best three-day run in three months on Wednesday after the Greek parliament approved austerity measures to avoid defaulting on its debt.

* European shares are set to rise for a fourth straight day on Thursday, with investors' risk appetite rising on expectations that an initial positive vote by Greece's parliament on austerity measures will help the country in avoiding a debt default.

FUNDAMENTALS

* The leading U.S. pension funds had less than 1 percent of their total money invested in commodities as the second quarter ended, despite worries of long-term inflation, a Reuters survey showed.

* Holdings of the largest silver-backed ETF, New York's iShares Silver Trust fell 0.21 percent from Tuesday to Wednesday, while the largest gold-backed exchange-traded-fund (ETF), New York's SPDR Gold Trust holdings dropped 0.08 percent for the same period.

TECHNICALS

* Gold support was at $1,497 an ounce and resistance at $1,526. The 14-day RSI was at 45.5.

* Silver support was at $34.15 an ounce and resistance at $35.65. The 14-day RSI was at 44.2.

* Platinum support was at $1,696 an ounce and resistance at $1,747. The 14-day RSI was at 43.5.

For related news and prices, click on the codes in brackets: Spot gold/silver Platinum/palladium Gold lease rates Comex gold futures <0#GC:> Europe/Asia prices CBOT 100 oz gold futures <0#ZG:> RELATED NEWS AND OTHER TOPICS Precious metals news All metals news Metals summary Index of summaries All commodities news Metals diary Ldn Bullion Mkt Assoc Foreign exchange rates SPEED GUIDES

For Reuters Metals Production Database click on URL below http://mpd.session.rservices.com (Reporting by Melanie Burton; editing by Jason Neely)

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