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PRECIOUS-Factors To Watch on June 1

Published 06/01/2011, 02:43 AM
Updated 06/01/2011, 02:48 AM
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LONDON, June 1 (Reuters) - Spot gold edged lower on Wednesday, as easing worries about the Greek debt crisis dampened the appeal of bullion for investors, but a weaker dollar cushioned losses.

For latest market report, click on [GOL/].

PRICES * Spot gold

* Silver

* Platinum

* Palladium

DATA/EVENTS

* U.S. Challenger Layoffs for May at 1130 GMT.

* U.S. Construct Spending Apil at 1400 GMT.

* U.S. vehicle sales for May.

MARKET NEWS

* The euro traded at a three-week high versus the dollar on Wednesday, buoyed by hopes for a fresh bailout package for debt-laden Greece, while Asian stocks were little changed after manufacturing data from China was largely in line with expectations. [MKTS/GLOB]

* The euro rose to a three-week peak against the dollar on Wednesday, boosted by hopes for an agreement on Greek austerity steps and progress toward an aid package for the debt-hobbled nation, but the currency has approached chart resistance that may cap its near-term gains. [USD/]

* Brent was steady below $117 a barrel on Wednesday, supported by disruptions to oil supplies to top consumer the United States and political upheaval in Yemen, while weak economic data from the world's largest economy weighed on the market. [O/R]

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* European shares were set to edge up on Wednesday, adding to gains in the previous session, and after a rally on Wall Street, though renewed worries about the U.S. economy and caution ahead of employment data were expected to limit the upside. .EU]

* Wall St bulls took the upper hand with a 1 percent rally on Tuesday as hopes for a new plan to deal with Greece's debt crisis relieved some investor worry, but grim economic data suggested more hurdles ahead as the S&P 500 closed out its worst month since August. [.N]

* Any other financial news already published, that may be relevant for the industrial metals markets.

FUNDAMENTALS

* Mexico's central bank moderately expanded its gold holdings in April after buying more than $4 billion in bullion in March. [ID:nN31102156]

* Chinese banks have been told to adequately warn silver forward investors of trading risks after recent price swings, local media reported on Wednesday, citing a notice from the Shanghai bureau of the China Banking Regulatory Commission. [ID:nL3E7H109I]

* Holdings of the largest gold-backed exchange-traded-fund (ETF), New York's SPDR Gold Trust fell 0.20 percent from Friday to Tuesday, while the largest silver-backed ETF, New York's iShares Silver Trust remained unchanged for the same period. [IDnSGE74U00X]

TECHNICALS

* Gold support was at $1,520 an ounce and resistance at $1,549. The 14-day RSI was at 60.2

* Silver support was at $37.10 an ounce and resistance at $39.9. The 14-day RSI was at 51.0.

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* Platinum support was at $1,810 an ounce and resistance at $1,852. The 14-day RSI was at 58.9.

(Reporting by Melanie Burton, editing by William Hardy)

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