PRECIOUS-Gold inches up after sell-off; US fiscal worries weigh

Wed Nov 28, 2012 7:59pm EST

SINGAPORE, Nov 29 (Reuters) - Gold ticked higher on
Thursday, after suffering its biggest daily decline in nearly
four weeks in the previous session, as the looming deadline for
averting a U.S. fiscal crisis kept investors on their toes.
    
    FUNDAMENTALS
    * Spot gold edged up 0.1 percent to $1,721.51 an
ounce by 0042 GMT, after tumbling 1.3 percent in the previous
session due to a heavy bout of stop-loss selling.
    * U.S. gold gained 0.3 percent to $1,721.50.
    * U.S. House Speaker John Boehner voiced optimism that
Republicans could broker a deal with the White House to avoid
year-end austerity measures, saying on Wednesday that
Republicans were willing to raise revenues if Democrats agreed
to spending cuts. 
    * President Barack Obama said he hoped to reach an agreement
with Congress before Christmas to avoid the looming "fiscal
cliff" and shrink the budget deficit, and ramped up efforts to
rally the public to press Republicans for action.
 
    * New U.S. single-family home sales fell slightly in October
and sales for the prior month were revised sharply lower,
casting a faint shadow over one of the brighter spots in the
U.S. economy. 
    * SPDR Gold Trust, the world's biggest gold-backed
exchange traded fund, said its holdings had hit a record high of
1,347.018 tonnes on Nov. 28. 
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    MARKET NEWS
    * U.S. stocks rallied on Wednesday after the comments from
Boehner turned the market around. 
    * The euro was little changed against the dollar on
Thursday, after falling for three sessions straight on worries
about how a deal on Greek debt would be implemented and
uncertainty over the U.S. fiscal cliff. 
    
    DATA/EVENTS
 0855 Germany    Unemployment rate Nov                
 1000 Euro zone  Business climate Nov                 
 1000 Euro zone  Economic sentiment Nov               
 1330 U.S.       Weekly jobless claims                
 1330 U.S.       GDP Q3                               
 1500 U.S.       Pending home sales Oct               
   
    PRICES
 Precious metals prices 0042 GMT
  Metal             Last    Change  Pct chg  YTD pct chg    Volume
  Spot Gold        1721.51    2.20   +0.13     10.09
  Spot Silver        33.72   -0.01   -0.03     21.78
  Spot Platinum    1606.00    2.75   +0.17     15.29
  Spot Palladium    670.00   -2.50   -0.37      2.68
  COMEX GOLD DEC2  1721.50    5.00   +0.29      9.87         3314
  COMEX SILVER DEC2  33.71    0.03   +0.08     20.76          918
  Euro/Dollar       1.2942
  Dollar/Yen         82.12
  COMEX gold and silver contracts show the most active months 
 
 (Reporting by Rujun Shen; Editing by Himani Sarkar)