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PRECIOUS-Gold hovers around $1,900 on euro zone woes

Published 09/05/2011, 08:35 PM
Updated 09/05/2011, 08:40 PM
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By Rujun Shen

SINGAPORE, Sept 6 (Reuters) - Spot gold hovered around $1,900 an ounce on Tuesday, as renewed fears over the euro zone's debt crisis drove investors to safe-haven assets such as bullion.

FUNDAMENTALS

* Spot gold edged down 0.1 percent to $1,897.36 an ounce by 0023 GMT, after hitting $1,903.09 earlier, about $8 off the record of $1,911.46 set on Aug. 23.

* U.S. gold gained 1.2 percent to $1,900.

* Worries about the resurfacing euro zone debt crisis helped push gold above $1,900 in the previous session, while Europe faces a string of political and legal tests this week that could hurt efforts to resolve its sovereign debt crisis and step up pressure for governments to try more radical solutions.

* Greece expects to receive another tranche of aid on schedule in September despite a dispute with international lenders Athens had fallen behind schedule in cutting its deficit.

* Global growth in services came to a virtual standstill last month as new business all but dried up, adding to fears the world economy is facing another recession.

* Investors are closely watching the data out of Europe, including revised Gross Domestic Product (GDP) for the second quarter and Germany's industrial orders in July.

* For the top stories on metals and other news, click , or

MARKET NEWS

* European stocks tumbled 4 percent on Monday, as fears for the future of the euro zone bubbled up against a background of weak economic growth and threats to the banking sector. Wall Street was closed for a public holiday.

* The euro wallowed at one-month lows against the greenback in Asia on Tuesday, while commodity currencies nursed heavy losses as concerns about the health of the global economy prompted investors to dump riskier assets.

DATA/EVENTS 0430 Australia RBA cash rate Final Sep 0900 Euro zone Revised GDP Q2 1000 Germany Industrial orders July 1400 U.S. Employment Index Aug 1400 U.S. ISM N-Mfg PMI Aug 1400 U.S. ISM N-Mfg Bus Act Aug

PRICES Precious metals prices 0023 GMT Metal Last Change Pct chg YTD pct chg Volume Spot Gold 1897.36 -2.69 -0.14 33.67 Spot Silver 42.86 0.02 +0.05 38.89 Spot Platinum 1878.49 -5.21 -0.28 6.28 Spot Palladium 764.00 3.85 +0.51 -4.44 TOCOM Gold 4699.00 60.00 +1.29 26.01 35576 TOCOM Platinum 4684.00 37.00 +0.80 -0.26 3959 TOCOM Silver 105.50 0.00 +0.00 30.25 336 TOCOM Palladium 1912.00 -15.00 -0.78 -8.82 66 COMEX GOLD DEC1 1900.00 23.10 +1.23 33.67 89097 COMEX SILVER DEC1 42.95 -0.12 -0.29 38.80 13533 Euro/Dollar 1.4070 Dollar/Yen 76.94 TOCOM prices in yen per gram. Spot prices in $ per ounce. COMEX gold and silver contracts show the most active months

(Reporting by Rujun Shen; Editing by Clarence Fernandez)

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