* Gold may gain to $1,403 -technicals[]
* Coming up: U.S. ISM Manufacturing PMI Nov; 1500 GMT
(Updates prices)
By Lewa Pardomuan
SINGAPORE, Dec 1 (Reuters) - Gold firmed to its highest in
nearly three 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 euro bailout package from
the European Union. []
Spot gold rose as high as $1,393.15 an ounce, its
highest since Nov 12, and was at $1,393.10 an ounce by 0647
GMT, up $8.16. Bullion was still below a lifetime high of
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 $7.4 to $1,393.5 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 inched up on Wednesday after a drubbing the
previous day but remained near 11-week lows against the dollar
in a market waiting to see what European policymakers will do
next to contain worries about euro zone debt.
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 an interest rate hike in China.
China's factories revved up production in November, but a
big jump in input prices pointed to more inflationary pressure
in the pipeline and a need for more monetary
tightening.[]
The U.S. Navy is seeking a medium-range oil tanker to move
at least 30,000 tonnes of jet fuel from Japan to South Korea,
industry sources said on Wednesday, at a time of heightened
military tension on the Korean peninsula. []
In equities, Japan's Nikkei share average inched up on
Wednesday, after falling nearly 2 percent the previous day
when China stocks tumbled on a liquidity squeeze. U.S. shares
fell in a choppy session on Tuesday on Portugal fears.
Precious metals prices at 0647 GMT
Metal Last Change Pct chg YTD pct chg Turnover
Spot Gold 1393.10 8.16 +0.59 27.14
Spot Silver 28.40 0.35 +1.25 68.75
Spot Platinum 1669.49 13.49 +0.81 13.80
Spot Palladium 703.97 7.97 +1.15 73.61
TOCOM Gold 3749.00 49.00 +1.32 15.04 73988
TOCOM Platinum 4522.00 34.00 +0.76 3.22 13844
TOCOM Silver 76.30 3.00 +4.09 47.58 3294
TOCOM Palladium 1895.00 23.00 +1.23 62.66 860
Euro/Dollar 1.3021
Dollar/Yen 83.43
TOCOM prices in yen per gram. Spot prices in $ per ounce.
(Editing by Himani Sarkar)
