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PRECIOUS-Gold rebounds as safe-haven allure stays

Published 09/06/2011, 08:47 PM
Updated 09/06/2011, 08:52 PM
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SINGAPORE, Sept 7 (Reuters) - Spot gold rebounded as much as 0.8 percent from a sharp slide off the record high in the previous session, as the metal's appeal remained undimmed to investors keen to seek safety during a period of heightened worry about the euro zone's debt crisis.

FUNDAMENTALS

* Spot gold traded up 0.6 percent to $1,874.89 an ounce by 0033 GMT, easing from an intra-day high of $1,879.69. It hit a record high of $1,920.30 then slid as much as $60 in the previous session.

* U.S. gold gained 0.3 percent to $1,877.90, off the all-time high of $1,923.7 struck on Tuesday.

* Gold tumbled on Tuesday after the Swiss National Bank shocked the market by setting an exchange rate cap on the soaring franc, discouraging investors to use the currency as a safe haven.

* The strong rebound in gold showed that appetite for the precious metal has hardly been dented, as investors anxious about euro zone's fiscal health are appear to take advantage of the price dip to build up positions.

* The dominant U.S. services sector picked up steam unexpectedly last month, snapping a three-month streak of slower growth, though a slower pace of hiring underscored concerns about the broader job market.

* Holdings in the world's largest gold-backed exchange-traded fund, SPDR Gold Trust , have not changed since Aug. 30, at 1,232.314 tonnes.

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

MARKET NEWS

* Wall Street fell for a third day on Tuesday on fears Europe still has failed to tackle its debt crisis, prompting worries the market is headed to new lows for the year.

* The dollar retained gains against the Swiss franc on Wednesday, after the Swiss National Bank jolted markets by setting a limit on how much the franc can gain.

DATA/EVENTS 0130 Australia GDP yr/yr Jun 2011 0300 Japan BOJ rate decision Sep 2011 1000 Germany Industrial output mm Jul 2011 1145 U.S. ICSC chain stores yy Weekly 1300 Canada BoC rate decision 40733 1800 U.S. Fed Beige book 2350 Japan Bank lending yy Aug 2011

India M3 Money Supply Fortnightly

PRICES

Precious metals prices 0033 GMT Metal Last Change Pct chg YTD pct chg Volume Spot Gold 1874.89 10.48 +0.56 32.09 Spot Silver 42.11 0.49 +1.18 36.45 Spot Platinum 1851.74 5.69 +0.31 4.77 Spot Palladium 754.00 8.47 +1.14 -5.69 TOCOM Gold 4677.00 -69.00 -1.45 25.42 90256 TOCOM Platinum 4654.00 -56.00 -1.19 -0.89 6405 TOCOM Silver 104.60 -1.40 -1.32 29.14 413 TOCOM Palladium 1897.00 -16.00 -0.84 -9.54 307 COMEX GOLD DEC1 1877.90 4.60 +0.25 32.12 5521 COMEX SILVER DEC1 42.19 0.32 +0.76 36.34 805 Euro/Dollar 1.4019 Dollar/Yen 77.49 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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