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PRECIOUS-Factors To Watch on July 5

Published 07/05/2011, 02:33 AM
Updated 07/05/2011, 02:36 AM

July 5 (Reuters) -

Spot gold was steady on Tuesday after ratings agency Standard & Poor's warned that it would treat plans for a rollover of privately-held Greek debt as a selective default, which boosted safe haven demand for bullion.

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PRICES

* Spot gold was bid at $1,493.64 an ounce at 0625 GMT compared with $1,495.54 late in New York on Monday.

* Silver was at $33.98 from $34.08.

* Platinum was at $1,711.24 from $1,718.55

* Palladium was at $754.50 from $757.45

DATA/EVENTS

* German Markit services PMI for June at 0753 GMT.

* Euro zone Markit services PMI for June at 0758GMT.

* Euro zone retail sales for May at 0900 GMT

* U.S. factory orders for May at 1400 GMT.

MARKET NEWS

* The euro was set to snap its six-day winning streak on Tuesday, coming off near one-month highs against the dollar as the greenback was bought back broadly on a flurry of stop-loss buying and short-covering by macro-funds.

* Brent crude was lower on Tuesday, weighed down by lingering concerns over the health of the global economy, the Greek debt crisis and a stronger dollar.

* The Nikkei stock average eked out a tiny gain on Tuesday, managing to extend its rally to a sixth session, though signs of short-term overheating point to the chance of a near-term setback rather than a break above major resistance.

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* European shares are expected to open flat to slightly lower on Tuesday as one-month high equity prices prompt investors to take profits ahead of the euro zone services PMI and retail sales data, which may offer some short-term direction to the market.

FUNDAMENTALS

* Holdings of the largest gold-backed exchange-traded-fund (ETF), New York's SPDR Gold Trust and that of the largest silver-backed ETF, New York's iShares Silver Trust remained unchanged.

* Kazakhstan's net gold and foreign currency reserves fell to $34.2 billion as of June 30 from $35.5 billion on May 31, the central bank said on Tuesday.

TECHNICALS

* Gold support was at $1,478 an ounce and resistance at $1,512. The 14-day RSI was at 41.6.

* Silver support was at $33.35 an ounce and resistance at $34.90. The 14-day RSI was at 40.4.

* Platinum support was at $1,704 an ounce and resistance at $1,740. The 14-day RSI was at 41.4.

For related news and prices, click on the codes in brackets: Spot gold/silver Platinum/palladium

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