* Gold rises on physical buying
* For a technical on gold, click: []
* Coming Up: U.S. New home sales June; 1400 GMT
(Recasts, changes dateline from SINGAPORE)
By Rebekah Curtis
LONDON, July 26 (Reuters) - Gold rose on Monday on the back
of physical buying, but gains were subdued after European bank
stress tests showed few surprises and reduced the metal's
safe-haven appeal.
Traders said prices below $1,200 were boosting bargain
hunting from physical buyers.
"The fact that we are below $1,200 has reignited...
jewellery demand," said Robin Bhar, an analyst at Credit
Agricole. But he added that the results of the stress tests had
diverted investors' attention to riskier assets than gold.
Investors took some reassurance that European banks had
passed the stress tests on their ability to deal with a debt
crisis. Seven of 91 banks failed. []
Spot gold <XAU=> rose to $1,191.35 an ounce by 0906 GMT from
$1,189.05 late on Friday. In the previous session gold briefly
crossed $1,200 before falling sharply.
"The factors pushing gold haven't gone away," Bhar said,
citing sovereign debt, the outlook for inflation and the
devaluation of currencies.
"They're just probably not going to be in focus now the
stress tests have been done and concerns about the banks and the
overall level of debt have been eased for the time being."
Gold struck a lifetime high at $1,264.90 in early June.
For a 24-hour gold technical outlook, see:
http://graphics.thomsonreuters.com/WT/20102607085845.jpg
PLATINUM/PALLADIUM RALLY
Platinum rose to its strongest in a month on fund buying
driven by gains in equities. Asian shares rose on solid U.S.
corporate earnings and strong euro zone data. []
Platinum <XPT=> rose as high as $1,552.50 an ounce, its
highest since late June, and later traded at $1,542.25 an ounce
versus $1,539.45 on Friday.
Palladium <XPD=> hit a session high of $476 an ounce, its
highest since June 28, and later traded at $472.93 an ounce
versus $464.55.
Analysts see platinum prices rising as a gradual economic
recovery leads to increased demand for the autocatalyst metal,
but some of the euphoria that lifted forecasts earlier this year
has evaporated after a hefty correction in May, a Reuters poll
showed. []
U.S. gold futures for August delivery <GCQ0> added $3.7 to
$1,191.5 an ounce after settling nearly $8 lower following the
European stress tests.
Money managers cut their long, or bullish exposure, to U.S.
gold futures by 18 percent for the week to July 20 as the
metal's prices hit two-month lows, trade data on Friday showed.
[]
The world's largest gold-backed exchange-traded fund, SPDR
Gold Trust <GLD.P> said its holdings were unchanged at 1,302.046
tonnes. The holdings hit a record at 1,320.436 tonnes on June
29.
"There's some light physical-related buying," said Afshin
Nabavi of MKS Finance. "It's been there since Friday, continuing
into this morning."
Silver <XAG=> was at $18.13 versus $18.08 on Friday.
Investors will keep an eye on U.S. new home sales data for
June, due at 1400 GMT.
(Editing by Alison Birrane)
(Additional reporting by Lewa Pardomuan in Singapore)
