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PRECIOUS-Factors To Watch on July 6

Published 07/06/2011, 03:04 AM
Updated 07/06/2011, 03:08 AM
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LONDON, July 6 (Reuters) - Gold rose to a 1-1/2-week high on Wednesday, supported by a weaker dollar and renewed worries about euro zone debt after Moody's slashed Portugal's credit rating to junk.

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PRICES

* Spot gold was bid at $1,517.20 an ounce at 0651 GMT compared with $1,515.70 late in New York on Tuesday.

* Silver was at $35.83 from $35.45.

* Platinum was at $1,742.24 from $1,737.05.

* Palladium was at $777.50 from $770.38.

DATA/EVENTS

* Euro zone GDP revised Q1

* Germany industrial orders for may, 0900 GMT

* BOE monetary policy committee meeting

* WTO trade policy review of EU, Geneva

* ECB economics conference, Frankfurt

* ICSC/Goldman Sachs weekly U.S. chain store sales, 1145 GMT

* Redbook weekly Retail Sales Index, 1255 GMT

* IMF's Lagarde holds news conference, Washington, 1330 GMT

* U.S. ISM non-manufacturing for June, 1400 GMT    

MARKET NEWS

* Chinese banking shares fell for a second day on Wednesday after a sovereign fund unloaded a stake in two banks, flashing a cautious signal about risk even after the euro clawed back losses endured on Moody's downgrade of Portugal to junk status.

* Brent crude climbed above $114 a barrel, buoyed by hopes of higher demand in the months ahead and tighter U.S. inventories, but concerns about moderating economic growth in China and euro zone debt woes kept a lid on gains.

* European shares were set to rise for an eighth straight session on Wednesday, although peripheral euro zone banking shares could succumb to pressure after Moody's downgraded Portugal's credit rating to "junk", in a move which is likely to prompt further worries over the region's debt crisis.

* U.S. stocks ended a thinly traded session mostly flat on Tuesday as investors paused after last week's surge, though continually light volume suggested the market could encounter more choppy trading.

FUNDAMENTALS

* Holdings of the largest silver-backed exchange-traded fund (ETF), New York's iShares Silver Trust fell 0.04 percent from Friday to Monday, while holdings of the largest gold-backed ETF, New York's SPDR Gold Trust remained unchanged for the same period.

TECHNICALS

* Gold support was at $1,498 an ounce and resistance at $1,529. The 14-day RSI was at 53.72.

* Silver support was at $33.9 an ounce and resistance at $36.2. The 14-day RSI was at 59.58.

* Platinum support was at $1,716 an ounce and resistance at $1,773. The 14-day RSI was at 57.57. 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

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