RTRS:PRECIOUS-Gold steady, euro-priced bullion hits record
* Europe debt worries buoys gold sentiment
* Physical buying dries as prices rose $60 last week
* Gold targets $1,557.75 - technicals
* Coming up: U.S. June employment index; 1400 GMT
(Adds details, comments; Updates prices)
By Rujun Shen
SINGAPORE, July 11 (Reuters) - Spot gold was steady on
Monday, as the dimmed outlook for the U.S. economy and
persistent worries about euro zone nations' debt problem
supported sentiment.
The weaker-than-expected payrolls data last Friday dampened
hopes that the U.S. economy would bounce quickly from a slowdown
in the first half of the year, helping gold stage a 3.9-percent
weekly rise, its best week since November 2009.
A spate of data from the United States, including trade,
retail sales, industrial production and consumer price index, is
expected this week.
"If we see something that confirms further the weakness of
U.S. economy we may see gold benefit from that," said Darren
Heathcote, head of trading at Investec Australia.
Spot gold rose to a 2-1/2-week high of $1,546.69,
before easing to $1,544.74 an ounce by 0642 GMT.
U.S. gold GCcv1 edged up 0.3 percent at $1,545.40.
Ongoing worries about euro zone nations' sovereign debt and
uncertainties around the debt ceiling talks at the U.S. Congress
also helped boost gold's safe-haven appeal.
President Barack Obama and Republican leaders failed on
Sunday to mend rifts over tax increases and social spending cuts
in talks aimed at cutting the U.S. budget deficit and averting a
debt default.
Technical analysis suggested that gold may rise towards
$1,557.75 in the short term, said Reuters market analyst Wang
Tao.
EURO GOLD HITS RECORD HIGH
Euro-priced gold rose to an all-time high of
1,090.49 euros an ounce earlier in the day, buoyed by safe-haven
buying as Europe's debt crisis continued to unnerve investors.
European Council President Herman Van Rompuy has called an
emergency meeting of top officials dealing with the euro zone
debt crisis for Monday morning, reflecting concern that the
crisis could spread to Italy, the region's third largest
economy.
"If we start to see more pressure on Italy, such as talk of
debt default, gold will look to test the previous high," said
Heathcote of Investec.
Gold rose to an all-time high of $1,575.79 on May 2.
On the physical market, buyers have moved to the sidelines
after prices advanced nearly $60 in the previous week while
scrap sales trickled in, dealers said.
"We've seen some scrap selling but in small amount," said a
Singapore-based dealer, adding that scrap sellers are eyeing
$1,550 level to start selling in larger volume.
"We don't see much buying at current price level."
Physical demand is low during summer months when India, the
world's largest gold consumer, goes through the monsoon season
during which farmers are busy sowing and gold sales slow.
Rural areas account for about 70 percent of India's annual
gold consumption.
Spot silver lost 0.4 percent to $36.50 an ounce, off
the one-month high of $36.82 reached last Friday. U.S. silver
was little changed at $36.54.
Precious metals prices 0642 GMT
Metal Last Change Pct chg YTD pct chg Volume
Spot Gold 1544.74 1.19 +0.08 8.83
Spot Silver 36.50 -0.16 -0.44 18.28
Spot Platinum 1731.50 -1.25 -0.07 -2.04
Spot Palladium 771.47 -1.13 -0.15 -3.51
TOCOM Gold 4021.00 12.00 +0.30 7.83 56793
TOCOM Platinum 4547.00 -43.00 -0.94 -3.17 14671
TOCOM Silver 94.60 -0.50 -0.53 16.79 542
TOCOM Palladium 2021.00 -36.00 -1.75 -3.62 214
COMEX GOLD AUG1 1545.40 3.80 +0.25 8.72 11231
COMEX SILVER SEP1 36.54 0.00 -0.01 18.10 2721
Euro/Dollar 1.4191
Dollar/Yen 80.77
TOCOM prices in yen per gram. Spot prices in $ per ounce.
COMEX gold and silver contracts show the most active months
