PRECIOUS-Gold jumps over 3 pct on EU deal, logs monthly gain

* Gold posts first monthly rise in five
* Markets rally on EU deal to aid banks, intervene on bonds
* U.S. Mint gold coin sales weak in Q2
* Bullion posts largest quarterly drop since Q3 2008

(Adds quarter, month-end performance, details, updates market
activity)
By Frank Tang
NEW YORK, June 29 (Reuters) - Gold surged 3 percent to above
$1,600 an ounce o n F riday, ending June with its first monthly
gain in five months, as a European deal to shore up banks and
cut borrowing costs lifted bullion's investment appeal.
Silver and platinum group metals also soared after EU
leaders agreed to let their rescue fund inject aid directly into
stricken banks from next year and intervene on bond markets to
support troubled member states.
Monetary stimulus by central banks and governments is
bullish for gold, which has been a favorite among hedge fund
managers and institutional investors to hedge against the loss
of purchasing power due to currency depreciation and inflation.
The metal, which has for the most part of this year moved in
tandem with riskier assets, received a boost from heavy
short-covering after losses earlier this week sent the metal
close to being oversold.
A 9 percent jump in U.S. crude futures also helped gold,
with sharp gains in grains, other commodities, the euro and U.S.
equities amid a better economic outlook after the EU deal.
"The gold rally is likely to continue because once again we
held well above the $1,525 key support level, we've had rapid
short-covering and now we have some physical demand. I don't
think the market will press prices significantly at least in the
near term," said James Steel, chief commodity analyst at HSBC.
Spot gold was up 3.2 percent at $1,599.66 an ounce by
3:15 p.m. EDT (1915 GMT), having hit a session high of $1,606.79
an ounce, the loftiest price since June 20.
U.S. gold futures for August delivery settled up
$53.80 an ounce at $1,604.20, with trading volume in line with
its 30-day average for the first time in about a week,
preliminary Reuters data showed.
Spot silver rose 4.6 percent to $27.54 an ounce.
Still, gold posted a 4 percent drop for the three months to
the end of June, its biggest quarterly fall since the third
quarter of 2008.
After an 11-year bull run, which took gold prices to a
record $1,920.30 an ounce last September, it is now up just 2
percent on the year.

GOLD COIN SALES WEAK IN Q2
Gold coin consumption, viewed by some as a market-fear
gauge, tumbled in the second quarter to levels not seen since
before the 2008 economic crisis, reflecting the metal's failure
to attract safe-haven bids despite economic uncertainty.
Sales of the U.S. Mint's American Eagle gold coins fell more
than 50 percent year-on-year to 127,500 ounces in the second
quarter, their worst three months since the second quarter of
2008 -- prior to the height of the global economic crisis, the
Mint's website showed.
Physical gold buying in major consumer India picked up a
little o n F riday. Weakness in Indian demand has undermined spot
prices this year, with Indian gold prices near record highs due
to rupee weakness.
Among platinum group metals, spot platinum was up 4.2
percent at $1,441.75 an ounce, while spot palladium rose
3.7 percent to $581.75 an ounce. Both have rebounded from their
2012 lows earlier this week.
3:15 PM EDT LAST/ NET PCT LOW HIGH CURRENT
SETTLE CHNG CHNG VOL
US Gold AUG 1604.20 53.80 3.5 1551.30 1607.80 175,288
US Silver JUL 27.58 1.333 5.1 26.235 27.840 2,002
US Plat JUL 1449.10 62.70 4.5 1382.80 1449.50 1,156
US Pall SEP 584.55 20.65 3.7 564.45 585.95 4,285

Gold 1599.66 48.91 3.2 1551.76 1606.79
Silver 27.540 1.200 4.6 26.320 27.910
Platinum 1441.75 58.10 4.2 1388.00 1445.75
Palladium 581.75 20.85 3.7 566.93 583.75

TOTAL MARKET VOLUME 30-D ATM VOLATILITY
CURRENT 30D AVG 250D AVG CURRENT CHG
US Gold 193,504 201,114 194,847 25.24 1.98
US Silver 57,588 60,102 52,528 34.04 0.42
US Platinum 14,908 11,746 7,987 18 0.00
US Palladium 4,357 5,015 4,593

(Additional reporting by Jan Harvey in London; Editing by Dale
Hudson)