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PRECIOUS-Gold rebounds 0.6 pct; euro zone debt woes support

Published 09/12/2011, 08:47 PM
Updated 09/12/2011, 08:52 PM
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SINGAPORE, Sept 13 (Reuters) - Gold prices rebounded on Tuesday from a sell-off in the previous session, as the sovereign debt crisis in Europe remains supportive of safe-haven demand in bullion.

FUNDAMENTALS

* Spot gold gained 0.6 percent to $1,824.09 an ounce by 0025 GMT, after shedding more than 2 percent in the previous session.

* U.S. gold rose 0.8 percent to $1,827.60.

* Heightening fears of a potential Greek debt default hammered the euro and equities on Monday, and sparked a sell-off in gold as investors took profit off their gold bets to cover losses in other markets.

* But bullion remains supported by demand from investors fleeing riskier assets during economic turmoil.

* U.S. Treasury Secretary Timothy Geithner makes a one-day trip to Poland this week for an unprecedented meeting with euro zone finance ministers.

* China's central bank said the country's inflation, though easing in August, was still too high and it would maintain its monetary policy settings. High inflation is likely to benefit the country's demand for gold, seen as a good inflation hedge.

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

MARKET NEWS

* The euro held above a seven-month low against the greenback in Asia on Tuesday after a whippy session overnight saw a wave of short-covering lift it more than two cents on hopes that China would bolster Italy by buying its bonds.

* U.S. stocks rose on Monday, bouncing back in late trading, as hopes for Italy to get financial support from China tempered investors' worst fears over the euro zone's sovereign debt crisis.

DATA/EVENTS 1145 U.S. ICSC chain stores yy Weekly 1230 U.S. Import prices mm Aug 1230 U.S. Export prices mm Aug 1800 U.S. Federal budget, $ Aug

PRICES Precious metals prices 0025 GMT Metal Last Change Pct chg YTD pct chg Volume Spot Gold 1824.09 10.84 +0.60 28.51 Spot Silver 40.52 0.31 +0.77 31.30 Spot Platinum 1810.24 9.19 +0.51 2.42 Spot Palladium 709.22 6.72 +0.96 -11.29 TOCOM Gold 4538.00 -47.00 -1.03 21.69 50632 TOCOM Platinum 4539.00 -28.00 -0.61 -3.34 5113 TOCOM Silver 100.20 -1.00 -0.99 23.70 627 TOCOM Palladium 1786.00 -50.00 -2.72 -14.83 412 COMEX GOLD DEC1 1827.60 14.30 +0.79 28.58 3900 COMEX SILVER DEC1 40.62 0.40 +1.00 31.29 1014 Euro/Dollar 1.3628 Dollar/Yen 77.21 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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