* Vietnam grants more gold import quotes
* U.S. markets closed for Thanksgiving holiday
* Euro near two-month lows as debt crisis worries
(Refreshes prices, adds bonds)
By Elizabeth Fullerton
LONDON, Nov 25 (Reuters) - Gold was flat on Thursday,
lacking strong impetus due to the U.S. Thanksgiving holiday but
backed up by some safe haven buying amid Europe's debt crisis
and heightened tensions between North and South Korea.
The dollar, which traditionally has an inverse relationship
with bullion, strengthened against the euro <EUR=> on renewed
optimism over U.S. growth and persistent fears Ireland's debt
crisis might spill over into Spain and Portugal.
Spot gold <XAU=> eased $1.01 to $1,372.70 an ounce by 1223
GMT - well below a lifetime high around $1,424 struck in early
November. It had hit an intraday low around $1,367 an ounce.
U.S. gold futures <GCZ0> were flat around $1,372.6 an ounce.
Market watchers highlighted profit-taking and book-squaring
ahead of Thursday's U.S. holiday and next month's Christmas
break as a driver behind recent erratic trading and predicted
gold was likely to be rangebound for the rest of the week.
"Gold is finding reasonable interest on the dips from
investors who are worried about currency debasement, possible
inflation at a later stage and we're seeing reasonable physical
buying out of India because the wedding season is underway,"
said Robin Bhar, analyst at Credit Agricole, who saw gold
trading between $1,365-$1,375 in the next two days.
"There are enough factors to keep it steady, but maybe some
easing in concerns over the Koreas, over debt for now
particularly in Ireland..., so maybe we're not seeing the sort
of move towards $1,400 that perhaps we were thinking of a couple
of days ago," he said, referring to an exchange of artillery
fire between North and South Korea.
South Korea said on Thursday it would increase troops on
islands near North Korea with Pyongyang, warning it would follow
its bombardment earlier in the week with more shelling if its
wealthy neighbour tried any "provocations". []
Korea experts believe the North's actions were an isolated
act tied to the anticipated succession of ailing leader Kim
Jong-il by his inexperienced and little-known son Kim Jong-un.
"We expect sentiment to remain mixed in the coming sessions,
with gold and silver underpinned by pockets of safe-haven
buying, while trade today is likely to be thin with the U.S.
markets shut for Thanksgiving, although this will allow traders
the opportunity to reassess the macro-economic and geo-political
situation," Fastmarkets analyst James Moore said in a report.
VIETNAM QUOTAS
Bullion barely reacted to news that Vietnam's central bank
had granted additional quotas for domestic companies to import
gold between now and the year end, but dealers noted buying on
dips from consumers in Hong Kong and Southeast Asia.
[]
In the currency market, the euro struggled near a two-month
low as the euro zone debt crisis showed signs of spilling over
from Ireland to other euro zone members even after Ireland
unveiled an ambitious austerity plan. []
Yield spreads on Spanish and Portuguese bonds -- under
scrutiny for signs they will be the next casualties of Europe's
debt crisis -- narrowed slightly from recent highs.
But in the United States, data on Wednesday showed initial
jobless benefits claims fell to their lowest level in more than
two years last week while consumer spending rose for a fourth
straight month in October, fueling hopes the economic recovery
is strengthening. []
The gold market in India, top consumer of the metal, is
still in the midst of its busy season after the Dhanteras and
Diwali festivals earlier this month as many weddings are to take
place in the run up to December, spurring at least some demand
for the metal that plays an important role in social functions.
The rest of the precious metals complex was also lower on
Thursday. Silver <XAG=> fell to $27.45 from $27.55 late on
Wednesday, platinum <XPT=> dipped to $1,655.00 an ounce against
$1,659.99 and palladium <XPD=> was trading at $693.97 versus
$694.50.
(Editing by Keiron Henderson)
