July 2, 2012 / 12:38 AM / 5 years ago

PRECIOUS-Gold pauses after EU deal spurs rally

SINGAPORE, July 2 (Reuters) - Spot gold hovered below $1,600
an ounce on Monday, pausing after posting its strongest daily
rise in a month in the previous session on a euro zone deal
aimed at helping its debt-laden members.
    
    FUNDAMENTALS
    * Spot gold edged down 0.1 percent to $1,594.99 an
ounce by 0024 GMT, after surging 3 percent in the previous
session. The precious metal posted a monthly gain of more than 2
percent in June, its first in five months. 
    * U.S. gold lost half a percent to $1,595.70.
    * Euro zone leaders agreed on Friday to bend their aid rules
to shore up banks and bring down the borrowing costs of stricken
members like Italy and Spain, in a sign the bloc is adopting a
more flexible approach to solving its two-year old debt crisis.
 
    * Money managers slashed their net long positions in U.S.
gold futures and options by 20 percent in the week ended June
26, the first decline in five weeks. 
    * U.S. consumer spending growth ground to a halt in May as
auto purchases flagged, while confidence ebbed to a six-month
low in June, the latest signs of trouble for the economy.
   
    * Data showed manufacturing activity in China and Japan, the
world's second- and third-largest economies, fell to seven-month
lows in June, adding to worries that the health of the global
economy is deteriorating. 
    * For the top stories on metals and other news, click
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    MARKET NEWS
    * The euro took a breather on Monday as investors looked for
fresh reasons to extend a risk rally sparked by initial euphoria
over perceived progress in efforts to resolve Europe's debt
crisis. 
    * U.S. stocks surged on Friday to close out a sour quarter
on a high note a s investors cheered an agreement by European
leaders to stabilize the region's banks, a pact that helped
remove some of the uncertainty that has plagued markets. 
       
    DATA/EVENTS
 0230  China     HSBC Mfg PMI Final           Jun                 
 0500  India     HSBC Markit Mfg PMI          Jun                 
 0743  Italy     Markit/ADACI Mfg PMI         Jun                 
 0753  Germany   Markit/BME Mfg PMI           Jun                 
 0758  EZ        Markit Mfg PMI               Jun                 
 1400  U.S.      ISM Manufacturing PMI        Jun                 
 1400  U.S.      Construction spending mm     May                 
       Russia    HSBC Mfg PMI                 Jun                 
 
    PRICES
    Precious metals prices 0024 GMT
  Metal             Last    Change  Pct chg  YTD pct chg    Volume
  Spot Gold        1594.99   -2.00   -0.13      1.99
  Spot Silver        27.43   -0.05   -0.18     -0.94
  Spot Platinum    1439.08   -2.62   -0.18      3.31
  Spot Palladium    582.00    3.87   +0.67    -10.80
  COMEX GOLD AUG2  1595.70   -8.50   -0.53      1.84         2044
  COMEX SILVER SEP2  27.42   -0.19   -0.70     -1.77          544
  Euro/Dollar       1.2630
  Dollar/Yen         79.72
  COMEX gold and silver contracts show the most active months
  

 (Reporting by Rujun Shen; Editing by Ed Davies)

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