Gold rose to its highest in almost two weeks on Tuesday, as persistent worries about debt problems in the euro zone triggered safe-haven buying, traders said. The European Central Bank said on Monday that euro zone banks face another 195 billion euros ($239 billion) in potential writedowns to the end of 2011 in a second round of losses from the financial crisis. "The euro's coming off again and there's ongoing uncertainty in the market with all the debt problems," a Europe-based trader said. "On the technical side as well, gold looks pretty good, we're back on the upside," he said. Gold rose to a record high of $1 248.95 an ounce last month. PRICES * Spot gold was at $1 220.85 an ounce by 08:48 SA time, versus $1 214.20 an ounce last quoted in New York on Monday. Bullion earlier rose to a near two week-high of $1 222.20 an ounce. * Silver was at $18.53 an ounce, after rising as high as $18.63 an ounce, its highest since May 19 and from Monday's $18.49. * Platinum was at $1 561.30 an ounce versus Monday's $1 558.50 an ounce while sister metal palladium eased to $461.80 an ounce from $465.10 an ounce. DATA/EVENTS * US ISM Manufacturing PMI for May due at 4pm SA time. * US April construction spending due at 4pm SA time. * Germany unemployment for May due at 4pm SA time. * TIANJIN, CHINA - Metal Bulletin's 5th Asian Stainless Steel Conference (to June 2). Link: http://www.metalbulletin.com/events/1241/Asia-Pacific/Iron-and-Steel/Intro/5th-Asian-Stainless-Steel-Conference.html MARKET NEWS * The euro fell towards a four-year low against the dollar, hurt by fears that the region's sovereign debt problems may spread to the banking system, while the Australian dollar dropped after weak building data. * Asian stocks slid with creeping suspicion that a peak in the recovery has passed and slowing growth in China and Europe in the second half of the year will be obstacles to risky trades. * Oil held above $74 after Chinese factory data signalled sustained growth at the world's second-largest user, outweighing concerns about a potential slowdown in European economy. * European stock index futures pointed to a lower open on Tuesday, after sluggish Chinese macro data fuelled doubts over the global recovery and the European Central Bank said euro zone banks face another wave of potential writedown. FUNDAMENTALS * The second largest public pension fund in the United States is readying for its first investment in commodities to hedge against inflation, the Financial Times newspaper reported on Tuesday. * South Africa's National Union of Mineworkers (NUM) and the world's biggest diamond producer De Beers said on Monday they were likely to sign a wage deal that could prevent a strike at the company's operations. * Zimbabwe's Duration Gold expects to produce 100 000 ounces of gold per year by 2012, on the back of the country's liberalised gold trade and an improving investment climate, a company official said. * Rio Tinto's diamond unit in Zimbabwe said it has begun work on a $300 million expansion programme to raise output six-fold, and was talking with the government to improve the investment climate in mining. TECHNICALS * Gold support at $1 213 resistance at $1 229, 14-day RSI at 64.8. * Silver support at $17.90, resistance at $18.70, 14-day RSI at 56.9. * Platinum support at $1 515, resistance at $1 570, 14-day RSI at 42.6. - Reuters

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