By Clementine Wallop Of DOW JONES NEWSWIRES SINGAPORE (Dow Jones)--Gold prices fell in Asian trading Tuesday as the euro lost ground against the dollar amid resurfacing investor jitters about the euro-zone debt crisis. Spot gold was trading at $1,717 a troy ounce at 0505 GMT, down $4.90 from its previous settlement. The euro traded at $1.3160 compared with $1.3187 late in New York overnight and above $1.32 earlier Monday. Dollar-denominated commodities become more expensive to investors holding other currencies when the greenback firms. A Singapore-based trader attributed Tuesday's move lower to lingering concerns over Greece's debt crisis, and nervousness ahead of Wednesday's European Union finance ministers' meeting, at which politicians will discuss Greece's EUR130 billion bailout. Many investors are worried about the implementation of a fresh round of Greek austerity measures adopted by the country's parliament earlier this week to secure the bailout funds, analysts said. "The [Greek] government may yet find that approving the new measures, which include public sector job cuts, pension cuts and a minimum wage reduction, proves to be far less of a challenge than implementing them in the months ahead," Mitsui Global Precious Metals said in a note. Euro-zone rating cuts by Moody's Investors Services added to the jitters, after the ratings agency downgraded six European nations, including Spain and Italy, and cautioned that its ratings on Austria, France and the United Kingdom could be at risk. Some analysts said further turbulence in Europe will likely spur buying as investors seek safe stores of value, while others say it could bring gold under pressure alongside risky assets including industrial metals. The Singapore-based trader said gold will continue to benefit from safe-haven buying in Asia over the next few weeks, tipping strong psychological support at $1,700/oz. "As the debt crisis continues to accelerate in Europe, gold will be viewed as a safe haven as the fear of contagion grips the markets," Jeffrey Sica, president and chief investment officer of U.S.-based SICA Wealth Management, said. "As investors lose faith in governments' abilities to handle deficits, they will turn to gold due to it having the psychological value of stability and certainty." Other precious metal prices fell with gold, as the stronger dollar damped investor interest. Silver was trading at $33.56, down 16 cents from its previous settlement. Platinum was trading $13 lower at 1,638/oz, while palladium was $3.00 lower at 693/oz. -By Clementine Wallop; Dow Jones Newswires; 65 64154 082; clementine.wallop@dowjones.com

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