PRECIOUS-Gold up after Spain deal; outpaced by other metals

Mon Jun 11, 2012 12:49pm IST

* Spot platinum up 2 percent; spot palladium leads the pack
    * Gold-platinum spread narrows to lowest in June
    * Spot gold signals mixed - technicals 
    * Coming up: France industrial output, April; 0645 GMT

 (Adds details, comments; updates prices)	
    By Rujun Shen	
    SINGAPORE, June 11 (Reuters) - Gold firmed on Monday, rising
nearly 1 percent at one stage on the euro zone's decision to
help Spain's battered banks, which boosted risky assets and
pressured the dollar.	
    The gains, however, were outpaced by those of precious
metals with industrial uses. 	
    Silver, platinum and palladium outshone gold, with palladium
leading the pack with an increase of 2.2 percent, its largest
one-day rise in two months.	
    Euro zone finance ministers agreed on Saturday to lend Spain
up to 100 billion euros ($125 billion) to shore up its teetering
banks, providing relief for markets that have lately been
gripped with fear of a potential breakdown of the euro zone.
 	
    The single currency rallied and was headed for its biggest
one-day rise against the dollar in nearly eight months, while
base metals and equities also jumped.  	
    "There's a strong rebound in risk appetite after the Spain
deal," said Li Ning, an analyst at Shanghai CIFCO Futures. "The
surprisingly strong China trade data is also lending support to
riskier assets." 	
    Spot gold edged up 0.3 percent to $1,598.56 an ounce
by 0700 GMT, retreating from an intra-day high of $1,607.95 hit
in the early hours.	
    The most-active U.S. gold futures contract for August
delivery rose half a percent to $1,599.60, but off a high
of $1,609.3 hit earlier in the day.	
    	
    SENTIMENT FICKLE WITH UNCERTAINTIES AHEAD	
    Earlier, spot gold erased gains to hit an intra-day low of
$1,592.7, as liquidation in the Shanghai market weighed. But the
popular gold spot deferred contract on the Shanghai
Gold Exchanged opened the afternoon session higher, and stood at
327.95 yuan a gram, or $1,601.6 an ounce.	
    "Unless we see a definitive change in the scenario, gold
will be rangebound, as people don't want to commit too much on
either said," said a Hong Kong-based dealer.	
    Investors will be closely watching the Greek elections on
June 17, a Group of 20 meeting on June 18-19, as well as a
policy meeting by the U.S. Federal Reserve on June 19-20. 	
    Money managers raised their net length in U.S. gold and
futures by more than 27 percent to 98,426
contracts in the week ended June 5, posting the biggest weekly
rise since September 2009. 	
    Speculative net longs in silver also surged,
up a third to 6,549 contracts from 4,912 contracts a week
earlier - the lowest level since November 2008. 	
    Spot silver surged nearly 2 percent to an intra-day
high of $29, before easing to $28.83.	
    Platinum group metals, widely used in producing
autocatalysts that reduce toxic exhaust, also staged impressive
gains, with spot platinum up 1.8 percent to $1,446.99 and
spot palladium up 2.1 percent at $622.72.	
    As platinum's gains outstrip those in gold, bullion's
premium to platinum narrowed to about $150 an ounce, its lowest
in June.	
    	
   Precious metals prices 0700 GMT
  Metal             Last    Change  Pct chg  YTD pct chg    Volume
  Spot Gold        1598.56    4.71   +0.30      2.22
  Spot Silver        28.83    0.35   +1.23      4.12
  Spot Platinum    1446.99   24.99   +1.76      3.88
  Spot Palladium    622.72   13.07   +2.14     -4.56
  COMEX GOLD AUG2  1599.60    8.20   +0.52      2.09        18319
  COMEX SILVER JUL2  28.80    0.32   +1.14      3.15         5606
  Euro/Dollar       1.2631
  Dollar/Yen         79.53
  COMEX gold and silver contracts show the most active months
   	
	
 (Editing by Ed Davies)
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