* China Jan-Oct gold imports jump six-fold
* Gold to target $1,403/z - technicals []
* Coming Up: U.S. Initial Claims Weekly; 1330 GMT
(Updates prices, adds quotes)
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 $4.57 to $1,391.92 an ounce by
0312 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 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 sometime off," said Poon,
referring to jewellery makers.
U.S. gold futures for February rose $5.0 an ounce
to at $1,393.3 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.
For a 24-hour gold technical outlook:
http://graphics.thomsonreuters.com/WT/20100212084453.jpg
"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 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. []
Silver tracked gold higher, while platinum group
metals also firmed.
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 held on to overnight gains early in Asia on
Thursday, having posted its biggest one-day rise in six weeks
in a dramatic turnaround as the market cut short positions
ahead of the European Central Bank policy meeting.
Japan's Nikkei share average rose 2 percent to a
fresh five-month high on Thursday, after Wall Street gained
the most in three months on talk of steps to resolve the EU's
debt crisis.
Precious metals prices at 0312 GMT
Metal Last Change Pct chg YTD pct chg Turnover
Spot Gold 1391.92 4.57 +0.33 27.03
Spot Silver 28.56 0.12 +0.42 69.70
Spot Platinum 1691.74 9.00 +0.53 15.32
Spot Palladium 736.47 4.98 +0.68 81.62
TOCOM Gold 3771.00 23.00 +0.61 15.71 48170
TOCOM Platinum 4626.00 104.00 +2.30 5.59 14298
TOCOM Silver 77.50 1.20 +1.57 49.90 1526
TOCOM Palladium 2002.00 107.00 +5.65 71.85 1362
Euro/Dollar 1.3113
Dollar/Yen 84.08
TOCOM prices in yen per gram. Spot prices in $ per ounce.
(Editing by Himani Sarkar)
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