* Gold edges up on firmer euro, oil
* Investors keep an eye on U.S. auto bailout, OPEC meeting
* Nikkei up 3.15 pct
(Updates prices, adds quotes, details)
By Lewa Pardomuan
SINGAPORE, Dec 10 (Reuters) - Gold inched up on Wednesday
after the euro strengthened against the U.S. dollar and oil
rebounded, with a tentative deal to bailout U.S. automakers
offering additional support as it lifted equities.
Asian shares struck a one-month high on hopes governments
worldwide will bail out ailing industries and increase spending
as they fight back against a worsening global economic
downturn. []
Gold <XAU=> was trading at $777.75 an ounce, up $2.25 from
New York's notional close on Tuesday. A sell-off in equities
had forced investors to ditch gold to cover losses, sending
bullion to a 13-month low around $680 an ounce late in October.
"I guess the potential for the upside is there.
Technically, gold should break the $780 resistance level to
sustain the uptrend because we've also seen profit taking in
Asia," said a dealer in Hong Kong, referring to Monday's
intraday high.
The White House and congressional Democrats reached an
agreement in principle on a $15 billion proposal for bailing
out U.S. automakers but final issues needed to be resolved.
[].
The Nikkei <> rose 2.6 percent on the bailout news but
fears of deflation remained firmly in place, with China's
wholesale price inflation collapsing last month, undershooting
expectations by a wide margin. []
The euro firmed to $1.2949 <EUR=>, spurring buying from
speculators in Asia.
Gold is struggling to sustain an uptrend since hitting a
two-month high of $931 in early October, mainly due to weakness
in oil and equities. Bullion was 25 percent below a lifetime
high of $1,030.80 struck in March, when fears of rising energy
costs spurred buying.
"There's bargain hunting in Japan because OPEC will cut
production next week. So we also see short-covering in the
crude oil market," said Kazuhito Saito of Interes Capital
Management in Tokyo.
Oil rebounded by more than $1 a barrel to around $43 in
bargain hunting on Wednesday, after slumping 4 percent
overnight on the back of lowered forecasts for U.S. energy
demand and fears of a deepening global recession. []
OPEC, facing a slide in oil prices since July of over $100
a barrel, has already agreed to cut about 2 million barrels per
day of output to support prices and members are leaning towards
more supply cuts at the Dec. 17 meeting in Algeria.
[]
The U.S. auto bailout relief helped lift platinum but
worries over demand lingered, with prices already falling more
than 60 percent since hitting a record of $2,290 in March due
to falling oil prices and recently, dismal car sales.
Platinum <XPT=>, which is used in auto catalytic
converters, was trading at $811.50 an ounce, up $8 from New
York notional close.
"It seems the news supports platinum but we are also
expecting global auto production to slow down as well because
of the recession. The support is rather limited," said the
dealer in Hong Kong.
New York gold futures <GCZ9> added $4.3 an ounce to $778.5
in electronic trade.
Precious metals prices at 0619 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 777.75 2.25 +0.29 -6.60
Spot Silver 9.92 0.13 +1.33 -32.84
Spot Platinum 811.50 8.00 +1.00 -46.61
Spot Palladium 173.50 -0.50 -0.29 -52.85
TOCOM Gold 2311.00 34.00 +1.49 -24.48
28404
TOCOM Platinum 2430.00 21.00 +0.87 -54.49
10982
TOCOM Silver 292.70 1.20 +0.41 -45.90
171
TOCOM Palladium 532.00 14.00 +2.70 -60.62
142
Euro/Dollar 1.2940
Dollar/Yen 92.59
TOCOM prices in yen per gram, except TOCOM silver which is
priced in yen per 10 grams. Spot prices in $ per ounce.
(Editing by Ben Tan)
