SINGAPORE: Physical buyers stood on the sidelines while scrap selling dwindled after prices eased from record high levels, as market participants wait for cues on further price moves from the unfolding euro zone debt crisis and US debt talks. Spot gold held steady around $1,590 on Friday, easing from the record high of $1,609.51 hit on July 19, as the euro zone leaders reached an agreement on Greece's bailout and progress was made in the United States. "Clients are waiting for prices to break on either side," said a Singapore-based dealer, "Demand is likely to pick up if prices drop below $1,580." Earlier this week scrap selling emerged as prices rallied 11 days straight to the record high, its longest winning stretch in at least four decades, weighing on gold bar premiums, dealers said. Gold premiums in Singapore stood at around 50 cents per ounce over London spot prices, down from $1 last week. Dealers cited premiums in Hong Kong from 50 cents to $1.2, with the consensus at 70 to 80 cents. Bullion demand is likely to pick up in mid-August, as Indians return after the monsoon rains and prepare for the upcoming wedding and festival season. But for now, market participants remain price-sensitive during the seasonal lull, traders said. In the long term, gold is likely to retain its appeal as a safe haven. Gold fever is gripping Asian investors and could spread to central banks as global growth uncertainties tarnish the appeal of other assets, putting bullion on course for more gains but also provoking fears about supply. Insecurity among investors about inflation and a lack of investment options in major emerging economies, such as China and India, also drives up gold demand.

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