RTRS:PRECIOUS-Gold steady as Europe looks for debt crisis cure
* Physical market trade thin; premiums steady
* Gold-platinum spread widens to about $200/oz
* Coming up: German industrial production, Oct; 1100 GMT
(Updates prices)
By Rujun Shen
SINGAPORE, Dec 7 (Reuters) - Gold traded steady on
Wednesday with many investors moving to the sidelines ahead of a
key European Union summit this week where policymakers are
expected to find a way to end the region's two-year-old debt
crisis.
Investors were also cautious after ratings agency Standard &
Poor's fired a second warning shot at the euro zone in 24 hours,
threatening to cut the credit rating of its financial rescue
fund.
In recent months gold's safe-haven appeal has been
tarnished, and the precious metal has been tracking riskier
assets as the turmoil in financial markets has squeezed funding
and forced investors to close profitable gold positions to cover
losses elsewhere.
The euro inched higher and the dollar index edged
down, as investors await the EU summit and a rate decision by
the European Central Bank on Thursday.
Asia's bullion market remained muted, dealers said.
"No one wants to hold stockpiles ahead of the year end and
the market is extremely quiet," said Dick Poon, manager of
precious metals at Heraeus in Hong Kong.
"Physical demand may pick up at the end of the month or
early January, as jewellers prepare for the Lunar New Year."
Premiums on gold bars in Hong Kong were steady in the range
of 50 cents to $1.50 an ounce above spot prices, dealers said.
Spot gold was little changed at $1,728.99 an ounce by
0654 GMT, flirting around the 100-day moving average at just
below $1,728.
U.S. gold edged up 0.1 percent to $1,733.80.
"Everyone is waiting for the results from the many meetings
in Europe this week," said Peter Fung, head of dealing at Wing
Fung Precious Metals. "Prices are likely to remain in the range
of $1,710 to $1,750 for now."
Household spending and exports kept the euro zone's economy
alive in the third quarter, the EU said on Tuesday, but
collapsing confidence points to a recession and probably gives
the ECB ground for another interest rate cut.
Spot platinum gained 0.6 percent to $1,529.49 per
ounce, bouncing from a 1-1/2-month low of $1,494.35 hit in the
previous session.
The gold-platinum spread widened to $204 an ounce
on Tuesday, its widest since Reuters started recording prices in
1985, and remained around $200.
Platinum has been at a discount to gold for the past three
months -- the longest period since 1985, as the metal, mainly
used in jewellery and autocatalysts, lost its attraction during
the global economic downturn.
Spot palladium rose to a one-month high of $673.50,
before easing to $672.47.
Precious metals prices 0654 GMT
Metal Last Change Pct chg YTD pct chg Volume
Spot Gold 1728.99 1.34 +0.08 21.81
Spot Silver 32.65 -0.07 -0.21 5.80
Spot Platinum 1529.49 9.75 +0.64 -13.47
Spot Palladium 672.47 5.25 +0.79 -15.89
TOCOM Gold 4328.00 35.00 +0.82 16.06 42347
TOCOM Platinum 3846.00 48.00 +1.26 -18.10 10034
TOCOM Silver 80.40 1.60 +2.03 -0.74 236
TOCOM Palladium 1693.00 106.00 +6.68 -19.27 567
COMEX GOLD FEB2 1733.80 2.00 +0.12 21.98 9102
COMEX SILVER MAR2 32.73 -0.01 -0.04 5.79 1873
Euro/Dollar 1.3435
Dollar/Yen 77.72
TOCOM prices in yen per gram. Spot prices in $ per ounce.
COMEX gold and silver contracts show the most active months
