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PRECIOUS-Gold rebounds on weak dollar as Greece fear eases

Published 07/03/2011, 09:00 PM
Updated 07/03/2011, 09:04 PM
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SINGAPORE, July 4 (Reuters) - Spot gold rebounded on Monday from a 1-percent drop in the previous session, buoyed by a weaker dollar as easing worries about Greece's debt crisis boosted the euro.

FUNDAMENTALS

* Spot gold gained 0.4 percent to $1,491.04 an ounce by 0046 GMT, regaining some lost ground from the previous session.

* U.S. gold rose 0.6 percent to $1,491.80 an ounce.

* Gold dropped nearly 1 percent last week, tracking the sluggish commodities complex, which posted a 3.4 percent drop in June, its second consecutive month of losses.

* Safe-haven demand in gold diminished after Greece passed austerity measures to secure international aide, and the U.S. manufacturing sector showed surprisingly strong growth in June.

* The end of the U.S. Federal Reserve quantitative easing programme is unlikely to derail gold's 10-year rally, but the precious metal might face a rockier road as the cheap money that had fueled its ascent dries up, at least for now.

* Managed money sharply cut their bullish bets in COMEX gold futures and options, as bullion prices tumbled 3 percent during the period, futures regulator Commodity Futures Trading Commission data showed Friday.

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

MARKET NEWS

* U.S. stocks started July with a bang on Friday with Wall Street scoring its best week in two years on strong manufacturing data that eased concerns about slowing growth.

* The euro rose to a nearly one-month high against the dollar in Asia on Monday while commodity currencies like the Australian dollar held onto last week's hefty gains, as diminishing worries about Greece prompted investors to embrace risk.

DATA/EVENTS 0130 AUSTRALIA May retail sales 0730 EZ Sentix index for July 0900 EZ Producer prices for May

PRICES

Precious metals prices 0046 GMT Metal Last Change Pct chg YTD pct chg Volume Spot Gold 1491.04 5.24 +0.35 5.04 Spot Silver 34.04 0.10 +0.29 10.30 Spot Palladium 757.50 3.50 +0.46 -5.25 TOCOM Gold 3885.00 -4.00 -0.10 4.18 48138 TOCOM Platinum 4526.00 54.00 +1.21 -3.62 7022 TOCOM Silver 88.70 -0.40 -0.45 9.51 246 TOCOM Palladium 1992.00 43.00 +2.21 -5.01 105 COMEX GOLD AUG1 1491.80 9.20 +0.62 4.95 2820 COMEX SILVER SEP1 34.09 0.38 +1.13 10.16 483 Euro/Dollar 1.4554 Dollar/Yen 80.84 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 Ed Lane)

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