PRECIOUS-Gold edges down, U.S. fiscal talks in focus

Wed Dec 26, 2012 7:39pm EST

SINGAPORE, Dec 27 (Reuters) - Gold inched down on Thursday,
giving up overnight gains in thin post-Christmas trade, with
investors keeping a close eye on talks between the White House
and Congress to prevent the U.S. economy from plunging into
recession next year.
        
    FUNDAMENTALS
    * Spot gold had dropped $2.83 an ounce to $1,656.66
by 0025 GMT, but still off a 4-month low struck last week. 
    * U.S. gold for February slipped $3.10 an ounce to  
 
$1,657.60.      
    * In a sign that there may be a way through deadlock in
Congress, Republican House of Representatives Speaker John
Boehner urged the Democrat-controlled Senate to act to pull back
from the so-called fiscal cliff and offered to at least consider
any bill the upper chamber produced. 
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    MARKET NEWS
    * Asian shares were capped on Thursday on investor edginess
about the chances of U.S. lawmakers striking a deal to avoid a
fiscal crunch by Dec. 31, while the yen stayed under pressure on
the prospect of drastic monetary easing and massive fiscal
spending. 
     * U.S. crude futures remained close to $91 a barrel on
Thursday. 
       
    DATA/EVENTS (GMT)
    0500 Japan Construction orders yy Nov 2012 
    1330 U.S. Jobless claims Weekly 
    1500 U.S. New home sales Nov 
    2300 S.Korea Industrial output yy Nov 2012 
    2313 Japan Manufacturing PMI Dec 2012 
    2330 Japan CPI, core nationwide yy Nov 2012 
    2350 Japan Industrial output prelim mm Nov 2012 
    2350 Japan IP forecast 1 mth ahead Nov 2012 
     N/A Russia HSBC Mfg PMI Dec 2012 
    
    PRICES
       
  Precious metals prices 0025 GMT
  Metal             Last    Change  Pct chg  YTD pct chg    Volume
  Spot Gold        1656.66   -2.83   -0.17      5.94
  Spot Silver        29.99    0.02   +0.07      8.31
  Spot Platinum    1533.92    0.87   +0.06     10.12
  Spot Palladium    687.97   -1.54   -0.22      5.44
  COMEX GOLD FEB3  1657.60   -3.10   -0.19      5.80         2331
  COMEX SILVER MAR3  30.05    0.01   +0.03      7.63          149
  Euro/Dollar       1.3232
  Dollar/Yen         85.65
 

 (Reporting by Lewa Pardomuan; Editing by Joseph Radford)