* Traders on sidelines awaiting cues on global economy
* India physical gold purchases lukewarm on high prices
* Coming up: U.S. PPI, March; 1230 GMT
(Adds details, comments; updates prices)
By Rujun Shen
SINGAPORE, April 12 (Reuters) – Gold hovered near $1,660 an
ounce on Thursday, supported by a steady euro on easing fears
about the euro zone debt crisis, though investors remained
cautious on the outlook for peripheral economies and were
awaiting more clues on global growth.
Traders saw gold in a consolidation phase after a recent
rally lifted prices from a near three-month low just above
$1,610, amid speculation of more easing from the U.S. central
bank.
A stable euro provided some support, after fears about
Spain’s debt problem somewhat eased on ECB Executive Board
member Benoit Coeure’s comments on potential bond
buying.
“The comment has stabilised the stock market and euro, but
the prospect in the euro zone still looks grim with yields in
Spain and Italy trading at relatively high levels,” said Peter
Tse, director at ScotiaMocatta in Hong Kong.
Tse said even if another risk sell-off took place on the
deteriorating euro zone situation, gold should be able to
weather the storm much better than other commodities due to its
safe-haven status.
Spot gold was little changed at $1,658.51 an ounce by
0151 GMT, standing above the 20-day moving average at $1,655.59.
U.S. gold barely moved from the previous close at
$1,659.50.
Investors will be watching a key auction of three-year
Italian bonds, the weekly U.S. unemployment claims data, U.S.
March producers prices figures later in the day, as well as
China economic growth data due on Friday, seeking clues on the
global economy.
A surprise could prompt gold to break the range-bound
pattern, which has suppressed interest in trading.
“A lot of people are on the sidelines right now and don’t
want to have an opinion at all,” said a Singapore-based trader.
He added that the physical market was calm, with the world’s
top consumer India yet to pick up material after jewellers ended
a three-week strike.
“India’s imports are rather soft, as the weak rupee and high
gold prices seem to be keeping demand at bay.”
China, the world’s second-largest gold consumer, imported 20
percent more gold from Hong Kong in February compared to a month
earlier, suggesting robust appetite for the precious metal.
Car sales in China climbed a modest 4.5 percent in March
from a year earlier, pulling back sharply from a hefty gain in
February, disappointing platinum group metals, especially
palladium which is widely used in gasoline-powered engines
produced in China.
Spot palladium gained 0.6 percent to $636 an ounce,
after dropping 0.6 percent in the previous session.
Precious metals prices 0151 GMT
Metal Last Change Pct chg YTD pct chg Volume
Spot Gold 1658.51 1.06 +0.06 6.06
Spot Silver 31.58 0.07 +0.22 14.05
Spot Platinum 1587.24 10.14 +0.64 13.94
Spot Palladium 636.00 3.52 +0.56 -2.53
COMEX GOLD JUN2 1659.50 -0.80 -0.05 5.92 7074
COMEX SILVER MAY2 31.58 0.05 +0.17 13.11 897
Euro/Dollar 1.3112
Dollar/Yen 81.00
COMEX gold and silver contracts show the most active months
(Editing by Ed Davies)
