* Gold may gain to $1,403/oz-technicals []
* Coming up: U.S. ISM Manufacturing PMI Nov ;
1500 GMT
(Updates prices, adds quotes)
By Lewa Pardomuan
SINGAPORE, Dec 1 (Reuters) - Gold held near its highest in
more than two weeks on Wednesday as growing fears about
Portugal's debt pummeled the euro, sending bullion priced in
the single currency to a record high.
Standard & Poor's threatened to cut the credit ratings of
Portugal, citing uncertainties stemming from the risk of the
country having to seek international financial aid -- just
after Ireland secured an 85 billion euros bailout package from
the European Union. []
Spot gold added $3.26 to $1,388.20 an
ounce by 0301 GMT after rising as high as $1,389.75 on Tuesday
-- its strongest since Nov. 12. Bullion was still below a
lifetime high around $1,424 struck in early November.
BNP Paribas hiked its 2011 gold price forecast by 20
percent, saying a number of factors -- uncertainty on the role
of the dollar within the international monetary system,
concerns on the stability of peripheral euro zone countries
and growing inflationary pressures in Asia -- supported an
upward trend.
"Consequently, we have raised our 2011 gold price forecast
to $1,500 an ounce from $1,245 an ounce previously. If we see
the gold rally extending in 2012, it will however take place
at a more moderate pace. We expect gold to average around
1,600 an ounce in 2012," BNP Paribas said in a report.
Gold priced in euro rallied to a record at
1,070.11 euros an ounce. U.S. gold February futures
rose $3.2 to $1,389.3 an ounce.
Spot gold is expected to extend its gain to $1,403
per ounce, as per its wave pattern and a Fibonacci projection
analysis, according to Wang Tao, a Reuters market analyst for
commodities and energy technicals
For a 24-hour gold technical outlook:
http://graphics.thomsonreuters.com/WT/20100112091756.jpg
The euro fell to around $1.2969 , lows not seen
since mid-September, clearing the way for a test of Fibonacci
support at $1.2794, a level representing the 61.8 percent
retracement of the June to November rally.
There are growing worries that other debt-ridden euro zone
countries such as Portugal and Spain will also need aid. The
Portuguese prime minister said the country was not facing any
pressure to ask for a bailout and did not need any such help.
[]
"We've seen buying on dips on the physical side but
towards year-end, I guess people will also book profits. I
think people are still watching the developments in Europe and
also Korea," said a dealer in Hong Kong.
"Is Europe going to print more money to rescue the
economy? Is China going to increase the interest rates? Let's
see how it's going to impact the market," he added.
Some dealers said there was a bit of safe-haven buying
related to the conflict in the Korean peninsula, while others
believed investors paid more attention to the debt crisis in
Europe and worries about interest rate hike in China.
HSBC's China Purchasing Managers' Index rose in November
to an eight-month high, powered by domestic demand, while the
prices manufacturers charge their customers climbed at the
fastest pace on record.
It was the strongest reading since March, despite anxiety
in financial markets over measures by the People's Bank of
China to tighten monetary policy. [] South
Korea plans more military drills after U.S. warships leave on
Wednesday, Yonhap news agency said, a move likely to add to
tension on the divided peninsula after last week's attack by
the North. []
In equities, Japan's Nikkei share average was flat on
Wednesday, after falling nearly 2 percent the previous day
when China stocks tumbled on a liquidity squeeze. U.S. fell in
a choppy session on Tuesday on Portugal fears.
Precious metals prices at 0301 GMT
Metal Last Change Pct chg YTD pct chg Turnover
Spot Gold 1388.20 3.26 +0.24 26.70
Spot Silver 28.09 0.04 +0.14 66.90
Spot Platinum 1664.49 8.49 +0.51 13.46
Spot Palladium 699.22 3.22 +0.46 72.43
TOCOM Gold 3740.00 40.00 +1.08 14.76 56864
TOCOM Platinum 4520.00 32.00 +0.71 3.17 9004
TOCOM Silver 75.90 2.60 +3.55 46.81 2662
TOCOM Palladium 1882.00 10.00 +0.53 61.55 508
Euro/Dollar 1.2995
Dollar/Yen 83.59
TOCOM prices in yen per gram. Spot prices in $ per ounce.
(Editing by Himani Sarkar)
