* U.S. markets closed for Thanksgiving holiday
* Euro remains under pressure as crisis worries
* Bunds fall in part on concerns of further bailouts
(Adds London closing prices, EU officials on zone breakup
risk)
By Elizabeth Fullerton
LONDON, Nov 25 (Reuters) - Gold was little changed 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 that Ireland's
debt crisis might spill over into Spain and Portugal.
Spot gold <XAU=> drifted lower to end the London session
around $1.00 off at $1,372.70 an ounce by 1512 GMT, well below a
lifetime high of around $1,424 in early November. It had hit an
intraday low at around $1,367 an ounce.
U.S. gold futures <GCZ0> were flat around $1,373.5 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 range-bound for the rest of the week.
"It's been the quietest of days ... Gold seems to be
consolidating generally and quite resilient," said Peter
Hillyard, head of metals sales at Anz Investment Bank, noting
that the market was likely to be quiet until Monday.
"Investors still seem to be of the opinion in general that
... there's generally fear about global economies. There's
generally a perception that there's not much you can trust to
invest in other than commodities, and that's not just gold."
South Korea said it would increase the number of troops on
islands near North Korea, while Pyongyang warned it would follow
its bombardment earlier in the week with more shelling if its
wealthy neighbour tried any provocations. []
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.
[]
EUROPE CRISIS SIMMERS ON
In the currency market, the euro remained under pressure as
jittery investors watched for signs that Ireland's debt crisis
might be spilling over to other euro zone members. []
German government bonds fell, pressured in part by the
financial implications for core issuers of potential further
euro zone bailouts, although the European Commission said there
were no discussions on financial aid for more countries after
Ireland asked for help.
Senior euro zone officials also dismissed suggestions by
some commentators that the single currency area could break up
because of peripheral members' high debts and deficits and a
loss of competitiveness with Germany.
German Chancellor Angela Merkel said she was more confident
than earlier this year that the European Union will emerge
stronger from the current crisis.
"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, an 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 this week's escalation of
hostilities between North and South Korea.
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, fuelling hopes the economic recovery
is strengthening. []
The rest of the precious metals complex was mixed on
Thursday. Silver <XAG=> fell to $27.49 from $27.55 late on
Wednesday and platinum <XPT=> dipped to $1,655.49 an ounce
against $1,659.99 but palladium <XPD=> rose to $694 from
$692.53.
(Editing by Jane Baird)
