PRECIOUS-Gold steady as Italy, Greece offer hope

Mon Nov 14, 2011 2:13am EST

* Renewed confidence in euro zone fuels risk appetite
    * Spot gold targets $1,820 -technicals 
    * Coming Up: Italy Treasury auctions

 (Updates prices)	
    By Rujun Shen	
    SINGAPORE, Nov 14 (Reuters) - Gold traded steady on
Monday, as changes in the political leadership in Italy and
Greece rekindled hopes for a resolution to the euro zone's debt
crisis, fuelling risk appetite in markets.	
    Equities and commodities rose after Italy and Greece rushed
to form new governments to save the indebted nations from
bankruptcy and fend off a wider financial meltdown in the euro
zone.  	
    Italy's new Prime Minister Mario Monti will face the first
test of confidence when the Treasury auctions up to 3 billion
euros of government bonds later today, after yields spiked to
unsustainable levels at an auction last week. 
 	
    "The change in political leadership is calming the financial
markets," said Ong Yi Ling, an analyst at Phillip Futures,
adding that confidence in the new leaders could fuel risk
appetite and push bullion higher.	
    Spot gold was little changed at $1,788.49 an ounce by
0653 GMT, after rising nearly 2 percent last week.	
    U.S. gold inched up $2.4 to $1,790.50.	
    Technical analysis suggested spot could target $1,820 during
the day, said Reuters market analyst Wang Tao. 
    	
    	
    	
    Although Italy and Greece have embarked on a painful journey
towards solving their debt problems, the euro zone debt crisis
is nowhere near an end, which could support long-term gold
prices.
    "In the longer term there is still a lot of uncertainty,
such as the many challenges Italy faces as to how the new
government will implement harsh reforms," said Ong of Phillip
Futures.	
    "The overall backdrop remains supportive of safe haven
demand in general."	
    Activities on the physical market were muted, as buyers shy
away from higher prices, dealers said. Premiums in Hong Kong and
Singapore were little changed from last week. 	
    "We see very light volume today. Gold could test $1,800
soon, while the $1,750 level provides good support," said a Hong
Kong-based dealer.	
    Platinum group metals led the rise in the precious metals
complex. Spot platinum gained 0.8 percent to $1,647.75,
and spot palladium rose 0.9 percent to $661, tracking
strong gains in prices of industrial metals. 	
    	
      Precious metals prices 0653 GMT
  Metal             Last    Change  Pct chg  YTD pct chg    Volume
  Spot Gold        1788.49    1.17   +0.07     26.00
  Spot Silver        34.62    0.01   +0.03     12.18
  Spot Platinum    1647.75   12.84   +0.79     -6.78
  Spot Palladium    661.00    5.70   +0.87    -17.32
  TOCOM Gold       4446.00   36.00   +0.82     19.23        42949
  TOCOM Platinum   4120.00   27.00   +0.66    -12.27        10850
  TOCOM Silver       85.20    1.60   +1.91      5.19          204
  TOCOM Palladium  1650.00   22.00   +1.35    -21.32          201
  COMEX GOLD DEC1  1790.50    2.40   +0.13     25.97        11571
  COMEX SILVER DEC1  34.66   -0.03   -0.08     12.01         4870
  Euro/Dollar       1.3755
  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
 	
 (Editing by Clarence Fernandez)
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