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PRECIOUS-Gold ticks up ahead of G7 emergency talks
June 5, 2012 / 3:57 AM / 5 years ago

PRECIOUS-Gold ticks up ahead of G7 emergency talks

 * Euro edges up on hopes that G7 meet may yield some result
 * Coming up: Group of Seven conference call

 (Adds comments, details; update prices)	
 By Rujun Shen	
 SINGAPORE, June 5 (Reuters) - Gold inched up on Tuesday
ahead of a Group of Seven conference call that will attempt to
discuss measures to contain the euro zone debt crisis that has
threatened to drag the global economy into a recession.	
 The euro edged higher, as bears trimmed shorts in case
policymakers decided to take decisive moves to tackle the
crisis, now in its third year.  	
 Bullion rose more than 3 percent last week, when it broke
its trend of trading in sync with riskier assets, but it slipped
in New York on Monday after declines in U.S. equities forced
speculators to cash in the metal to cover losses.	
 "The market sentiment has turned a bit more bullish since we
broke above the key $1,600 level on Friday, as investors may
favour gold as a safe haven again after the bad U.S. data last
week," said Peter Fung, head of dealing at Wing Fung Precious
Metals in Hong Kong.	
 Fung said gold has found a solid floor at the $1,530 level,
and could look to test $1,680, or even $1,700.	
 Spot gold gained $1.04 to $1,619.79 an ounce by 0335
GMT. U.S. gold futures for August delivery gained nearly
half a percent to $1,621.60 an ounce.  	
 A revival of investor interest in gold was reflected in the 
holdings of gold-backed exchange-traded funds,
which rose to 69.7 million ounces by June 3 in a third straight
day of gains, up from a four-month low of 69.4 million ounces
hit in late May. 	
 The holdings hit a record high of 70.89 million ounces in
mid-March.	
 "The physical market remains fragile but ETP holdings have
stabilised and remain close to record highs," said Barclays
Capital in a research note.	
 "But given the macro environment, we remain positive on
gold. How gold responds to key events this month, such as the
Greek election and the FOMC (Federal Open Market Committee)
meeting, will be pivotal in the metal reinstating its safe-haven
 appeal."	
 U.S. Treasuries and German Bund prices fell on Monday, as
investors cashed in profits after their yields declined to
record lows last Friday when the weak U.S. employment data
prompted a wave of safe haven bids into low-risk assets.
  	
 	
Precious metals prices 0335 GMT
  Metal             Last    Change  Pct chg  YTD pct chg    Volume
  Spot Gold        1619.79    1.04   +0.06      3.58
  Spot Silver        28.28    0.06   +0.21      2.13
  Spot Platinum    1439.74   17.09   +1.20      3.36
  Spot Palladium    612.22    3.84   +0.63     -6.17
  COMEX GOLD AUG2  1621.60    7.70   +0.48      3.50         7930
  COMEX SILVER JUL2  28.26    0.25   +0.89      1.22         4433
  Euro/Dollar       1.2521
  Dollar/Yen         78.31
  COMEX gold and silver contracts show the most active months
 	
 (Editing by Richard Pullin)	
 	
 

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