FXS: PRECIOUS-Gold up on bargain hunting, seen volatile
LONDON, Oct 20 (Reuters) - Gold prices rose more than 3 percent on bargain hunting and festival-related buying from India on Monday, but trading was choppy, analysts said.
"We are not out of the woods yet -- but for gold it looks like there might be light at the end of the tunnel," said James Moore at TheBullionDesk.com.
"The GDP numbers from China overnight do show that growth over there is slowing and the global picture is not looking particularly brilliant."
PRICES
* Spot gold was at $806.25/808.75 at 0657 GMT compared with $781.70 late in New York on Friday.
* Earlier gold rose 3.4 percent to a high of $808.20.
* Silver gained 4.6 percent to $9.80/9.88 from $9.37.
* Platinum was up 7.6 percent at $915/935 from $850.50.
* Palladium rose 6.5 percent to $180.50/188.50 from $169.50.
DATA/EVENTS
* German producer prices September due at 0600 GMT
* U.S. lead indicators September 1400 GMT
MARKET NEWS
* The yen fell against the euro and the Australian dollar as news that a global crisis summit was planned for next month helped the market regain some stability and prompted investors to pick up recently battered currencies.
* South Korea joined the list of countries announcing steps to stabilise markets, while the Dutch government agreed to pump some 10 billion euros ($13.4 billion) into ING, the country's largest listed bank.
* Most Asian stock markets rallied, with valuations growing more attractive, and oil prices rose ahead of an expected supply cut at an emergency OPEC meeting this week.
* European stocks were set rise as investors awaited corporate results and after European Central Bank President Jean-Claude Trichet pledged to do whatever it takes to restore confidence to financial markets.
* Oil extended gains by $2 a barrel, on expectations that OPEC could cut output at a Friday emergency meeting.
* Germany was set to approve a rescue package for banks and top Dutch lender ING sought an injection of government funds, but in a reminder that no country is immune from the global crisis, China reported weaker-than-expected growth.
* India's gold futures were higher on Monday, tracking foreign markets that moved up on bargain hunting after last week's severe falls, with a slightly stronger rupee capping the gains, analysts said.
FUNDAMENTALS
* Premiums for gold bar tripled to their highest in 2008 on Monday as jewellers scrambled to buy bullion after the price dropped to a 1-month low last week.
* Premiums paid for physical gold supplies above spot London prices jumped to $3 an ounce in Singapore and Hong Kong from $1 last week and could rise further because of tight supplies in Asia..
TECHNICALS
* Gold support at $785, resistance at $830, RSI 14 at 39.
* Silver support $9.10, resistance $10.90, RSI 14 at 36.
* Platinum support $850, resistance $992, RSI 14 29.
(Reporting by Anna Stablum, editing by William Hardy) For related news and prices, click on the codes in brackets: Spot gold/silver Platinum/palladiumGold lease rates Comex gold futures Europe/Asia prices CBOT 100 oz gold futures 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 Keywords: MARKETS PRECIOUS PREOPENER
