* China Jan-Oct gold imports jump six-fold
* Gold to target $1,403/z - technicals []
* Coming Up: US Initial Claims Weekly; 1330 GMT
(Updates prices)
By Lewa Pardomuan
SINGAPORE, Dec 2 (Reuters) - Gold firmed on Thursday,
within sight of its highest in nearly three weeks hit the
previous session, as worries about euro zone's fiscal crisis
lingered despite hopes the European Central Bank and the
United States would step in to help.
The European Central Bank is under pressure to unveil new
steps to stabilise the euro zone when it meets on Thursday as
the currency bloc battles a crippling debt crisis that has
stoked contagion fears in the United States and Asia.
[]
Spot gold added $5.20 to $1,392.55 an ounce by 0659
GMT after rising as high as $1,396.70 on Wednesday -- its
strongest since Nov. 12. Bullion was still below a lifetime
high around $1,424 struck in early November.
Bullion got a bit of a boost from news that China's gold
imports jumped six-fold in January to October to more than 200
tonnes, although dealers said Thursday's gains were mostly
driven by investment demand. []
"I don't think you can solve this problem in a short
period of time. I think we are still worried about the
situation in Europe," said Dick Poon, manager at Heraeus in
Hong Kong.
"Recently, we only see physical demand on the investment
side. Other than that, manufacturers are quite slow. This is
related to the high price. They take some time off," said
Poon, referring to jewellery makers.
U.S. gold futures for February rose $5.6 an ounce
to at $1,393.9 an ounce.
The world's largest gold-backed exchange-traded fund, SPDR
Gold Trust , said its holdings rose to 1,293.891 tonnes
by Dec 1 from 1,286.603 tonnes on Nov 29. The holdings hit a
record at 1,320.436 tonnes on June 29.
A bullish target at $1,403 per ounce for spot gold
is unchanged, as the current rise may extend its gain to the
100 percent Fibonacci projection level, according to Wang
Tao, who is a Reuters market analyst for commodities and
energy technicals.
Silver tracked gold higher. Palladium
jumped to its highest since early 2001, while platinum
rose to its highest since Nov. 12.
U.S. investment bank Goldman Sachs Group Inc said
on Wednesday it expects gold prices to peak near $1,750 an
ounce in 2012 on rising U.S. interest rates, even as the
metal's rally is expected to continue in 2011 due to
quantitative easing. []
"I think a recovery in Europe will be very slow. Even
though Portugal said that it has no problem, people don't
believe that," said a dealer in Hong Kong.
"The worry is psychological. The European Union has to
step in and give them the money," he added.
Even after Ireland's bailout, investors have been losing
confidence that Portugal and Spain can escape a similar fate,
leading to expectations the ECB will announce backstop
measures to keep cash flowing in its financial system, though
it may disappoint investors by not being ready to increase
bond purchases just yet. [][]
A U.S. official told Reuters that Washington would be
ready to support the extension of the European Financial
Stability Facility via an extra commitment of money from the
International Monetary Fund. []
The world's largest silver-backed exchange-traded fund,
iShares Silver Trust , said its holdings rose to
10,782.69 tonnes by Dec. 1 from 10,711.23 tonnes by Nov. 26.
The holdings jumped to an all-time high of 10,893.68 tonnes on
Nov 23.[]
The euro sat tight after surging higher the previous day,
as investors waited to see if European Central Bank policy
makers meeting later on Thursday would take any measures to
alleviate worries over euro zone debt.
Precious metals prices at 0659 GMT
Metal Last Change Pct chg YTD pct chg Turnover
Spot Gold 1392.55 5.20 +0.37 27.09
Spot Silver 28.59 0.15 +0.53 69.88
Spot Platinum 1702.00 19.26 +1.14 16.02
Spot Palladium 744.50 13.01 +1.78 83.60
TOCOM Gold 3773.00 25.00 +0.67 15.77 59171
TOCOM Platinum 4655.00 133.00 +2.94 6.25 23954
TOCOM Silver 77.70 1.40 +1.83 50.29 2163
TOCOM Palladium 2022.00 127.00 +6.70 73.56 1997
Euro/Dollar 1.3136
Dollar/Yen 84.08
TOCOM prices in yen per gram. Spot prices in $ per ounce.
(Editing by Himani Sarkar)
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