* Dubai crisis sees gold keep safe-haven appeal
* Gold sell-off offers dip buying chances and support mkt
By Chikako Mogi
TOKYO, Nov 30 (Reuters) - Gold steadied near $1,175 per ounce
on Monday, well above one-week lows hit the previous business
day, as Dubai debt default fears ensured bullion's safe-haven
appeal stayed intact.
News that two Dubai flagship firms planned to delay repaying
billions of dollars in debt renewed credit fears and initially
pushed gold down 5 percent on Friday as investors sold off gold
to raise cash to cover losses in equities as well as oil and
other commodities.
As the dollar's broad rise on its safe-haven aspect fizzled,
gold pared some of the losses, with the sell-off offering buying
opportunities to some investors who had lagged when bullion raced
to record highs almost daily in the past couple of weeks.
"Even when gold succumbs to cashing out, it faces renewed
demand on the dips because of its safe-haven appeal against
financial jitters," said Hiroyuki Kikukawa, general manager in
the market research department at Nihon Unicom in Tokyo.
Spot gold <XAU=> was at $1,175.80 per ounce as of 0252 GMT,
little changed from New York's notional close of $1,176.70.
Bullion hit a low of $1,136.80 an ounce on Friday, the lowest
since Nov. 20.
While bullion is about 2 percent below its record high of
$1,194.90 hit last week, it is on track for a rise of more than
12 percent in November, which would be its biggest monthly gain
in a year.
U.S. gold futures for December delivery <GCZ9> were also
steady at $1,176.10 per ounce, compared to $1,174.20 an ounce in
the COMEX division of the NYMEX.
The United Arab Emirates' central bank set up an emergency
facility on Sunday to support bank liquidity in the first policy
response to Dubai's debt woes, which threatened to paralyse
lending and derail economic recovery. []
UAE markets will face intense selling pressure when they
reopen on Monday in the first post-holiday trading after Dubai
shocked global markets last week by seeking a debt standstill for
two flagship firms. []
Investors are especially keen to discover whether the
six-month "standstill" on debt repayments involving the two firms
will be voluntary. If creditors are not given a choice, the
restructuring will be viewed as a default. []
Asian stock markets made a tentative recovery after last
week's steep sell-off over the Dubai debt crisis as investors'
nerves steadied on hopes that the fallout of a potential default
would be limited.
The dollar eased on Monday after the UAE central bank's
moves, pausing from sharp gains made last week when fears of a
possible Dubai debt default boosted the greenback's safe-haven
appeal. []
Kikukawa said gold could be dragged lower if the euro was
sold heavily against the dollar and as financial institutions
prepare to close their books for the year.
"There is a near-term possibility that gold may fall as
speculative positions are unwound, but the market will likely be
underpinned by demand at lower price levels," he said, adding
that gold was likely to find support around $1,100.
Expectations for more central bank buying of bullion in its
reserves also lent support, traders said.
Bullion's rise to a record high was triggered by expectations
that central banks in emerging countries will keep buying bullion
from the International Monetary Fund.
The IMF said it had sold gold to the central banks of Sri
Lanka, India and Mauritius.
Market volatility deterred investment, with holdings at the
world's largest gold-backed exchange-traded fund, SPDR Gold Trust
<GLD>, steady at 1,127.860 tonnes as of Nov. 27.
[]
Other precious metals also bounced from lows hit on Friday.
Silver <XAG=> was at $18.45 an ounce after hitting a two-week
low of $17.66 an ounce on Friday.
Platinum <XPT=> was at $1,451.50 per ounce, sharply above a
one-week low of $1,418.50, and palladium <XPD=> also rebounded to
$366.50 after touching a one-week low of $351 on Friday.
Precious metals prices at 0251 GMT
Metal Last Change Pct chg YTD pct chg Turnover
Spot Gold 1175.80 -0.90 -0.08 33.59
Spot Silver 18.44 0.19 +1.04 62.90
Spot Platinum 1451.50 15.00 +1.04 55.74
Spot Palladium 366.00 4.00 +1.10 98.37
TOCOM Gold 3292.00 36.00 +1.11 27.94 43666
TOCOM Platinum 4060.00 59.00 +1.47 53.09 12659
TOCOM Silver 516.50 15.10 +3.01 61.76 572
TOCOM Palladium 1031.00 20.00 +1.98 87.45 148
Euro/Dollar 1.5056
Dollar/Yen 86.75
TOCOM prices in yen per gram, except TOCOM silver which is
priced in yen per 10 grams. Spot prices in $ per ounce.
(Editing by Michael Watson)
((chikako.mogi@thomsonreuters.com; +81 3 6441 1871; Reuters
Messaging: chikako.mogi.reuters.com@reuters.net))
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