* Gold bounces in volatile trade, bargain hunters resurface
* For the technicals on gold, click []
* Coming Up: U.S. Consumer Confidence for June; 1400 GMT
(Updates prices, adds quotes)
By Lewa Pardomuan
SINGAPORE, June 29 (Reuters) - Gold bounced on bargain
hunting on Tuesday, with sentiment still underpinned by
Europe's debt crisis and record high ETF holdings although it
struggled to revisit last week's all-time high.
Investors will closely watch debt auctions by France and
Spain later this week after tepid demand for Italy's sale of 7
billion euros of government bonds on Monday highlighted
lingering worries about euro zone debt troubles.
Spot gold <XAU=> rose $2.55 to $1,238.60 an ounce, having
risen as high as $1,262.45 an ounce on Monday, just below a
record around $1,264 struck on June 21, before losing much of
the gain to a bout of profit taking.
"Gold is likely to remain pretty well supported in the
current quarter. Safe-haven demand for gold remains prominent,"
said David Moore, a commodity strategist at Commonwealth Bank
of Australia in Sydney, adding that Monday's decline did not
represent a fundamental change in gold views.
The world's largest gold-backed exchange-traded fund, SPDR
Gold Trust <GLD.P> said its holdings were unchanged at a record
high at 1,316.177 tonnes. []
U.S. gold futures for August delivery <GCQ0> added $3.1 an
ounce to $1,241.7 an ounce, having hit a high around $1,263 on
Monday -- its strongest price since last Monday's all-time high
at $1,266.50.
Gold has struck a record because of worries the sovereign
debt crisis in Europe could spread and the U.S. economy is
slowing, but some analysts felt the metal was vulnerable to
profit taking whenever it rose towards the peak.
"Hence, a cautious investor should carefully weigh the
upside potential against the downside risks and not be blinded
by gold's glittery charm," said Ong Yi Ling, investment analyst
at Phillip Futures.
For a graphic of the 24-hour gold technical outlook,
click:
http://graphics.thomsonreuters.com/gfx/WT_20102906085253.jpg
The euro was under pressure on Tuesday as funding concerns
about the euro zone drove investors to the safe-haven Swiss
franc. Investors were getting a bit wary about growth-linked
currencies and the euro amid festering problems in the euro
zone. []
The Nikkei rose 0.3 percent on Tuesday after posting a
two-week closing low the previous day, shrugging off declines
in U.S. stocks. [] []
Oil was steady above $78 on Tuesday as forecasts indicated
that tropical storm Alex would skirt the main production region
in the U.S. Gulf of Mexico, limiting disruption there to a few
precautionary closures. []
Precious metals prices at 0122 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 1238.60 2.55 +0.21 13.04
Spot Silver 18.68 0.00 +0.00 10.99
Spot Platinum 1565.00 0.00 +0.00 6.68
Spot Palladium 466.75 0.75 +0.16 15.10
TOCOM Gold 3570.00 -49.00 -1.35 9.54
25171
TOCOM Platinum 4537.00 -43.00 -0.94 3.56
7628
TOCOM Silver 54.20 -1.20 -2.17 4.84
322
TOCOM Palladium 1360.00 -29.00 -2.09 16.74
53
Euro/Dollar 1.2287
Dollar/Yen 89.35
TOCOM prices in yen per gram. Spot prices in $ per ounce.
(Editing by Clarence Fernandez)
