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PRECIOUS-Gold extends gains as equities drop

Published 10/02/2011, 08:19 PM
Updated 10/02/2011, 08:20 PM
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SINGAPORE, Oct 3 (Reuters) - Gold rose further on Monday as falling equities and lingering worries about a debt crisis in Europe drew investors to the metal, but a firm U.S. dollar could cap gains.

FUNDAMENTALS

* Spot gold added $1.94 an ounce to $1,624.89 by 0012 GMT. Gold had posted a quarterly gain of 8 percent -- its biggest this year, despite a drop of 11 percent for September -- its largely monthly decline in three years.

* U.S. gold rose $5.5 to $1,627.8 an ounce.

* The Nikkei average dropped 2 percent on Monday, as fears of slowing global growth and the spreading impact of Europe's credit woes encouraged investors to pull funds out of risk assets.

* Belgian and French finance ministers will meet on Monday to discuss ways to shore up the balance sheet of troubled Franco-Belgian financial services group Dexia , French daily Les Echos reported on Friday.

* For the top stories on metals and other news, click , or

MARKET NEWS

* The euro sank near eight-month lows in early Asia on Monday, on reports ministers from France and Belgium would meet and the lack of a credible solution to Europe's debt crisis.

* Oil fell more than a dollar on Monday on growing fears the euro debt crisis may spread and dampen global oil demand.

* U.S. stocks ended their worst quarter since the depths of the 2008 credit crisis, crippled by Europe's debt debacle, a U.S. credit downgrade and a sputtering global economy.

DATA/EVENTS

0400 Russia Manufacturing PMI Sep 2011

0500 India HSBC Markit Mfg PMI Fin Sep 2011

0743 Italy Markit/ADACI Mfg PMI Sep 2011

0753 Germany Markit/BME Mfg PMI Sep 2011

0758 EZ Markit Mfg PMI Sep 2011

1400 U.S. ISM Manufacturing PMI Sep

1400 U.S. Construction spending Aug

PRICES

Precious metals prices 0012 GMT Metal Last Change Pct chg YTD pct chg Volume Spot Gold 1624.89 1.94 +0.12 14.47 Spot Silver 30.27 0.37 +1.24 -1.91 Spot Platinum 1518.24 -6.26 -0.41 -14.10 Spot Palladium 605.47 -4.31 -0.71 -24.27 TOCOM Gold 4037.00 22.00 +0.55 8.26 28277 TOCOM Platinum 3798.00 -31.00 -0.81 -19.12 4482 TOCOM Silver 74.20 -2.20 -2.88 -8.40 214 TOCOM Palladium 1499.00 -61.00 -3.91 -28.52 1933 COMEX GOLD DEC1 1626.90 4.60 +0.28 14.46 3141 COMEX SILVER DEC1 30.30 0.21 +0.70 -2.08 1432 Euro/Dollar 1.3358 Dollar/Yen 77.11 TOCOM prices in yen per gram. Spot prices in $ per ounce. COMEX gold and silver contracts show the most active months

(Reporting by Lewa Pardomuan; Editing by Clarence Fernandez)

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