PRECIOUS-Gold edges up as US debt ceiling talks progress

Sun Jan 20, 2013 8:02pm EST

SINGAPORE, Jan 21 (Reuters) - Gold inched up on Monday,
reversing losses from the previous session on signs U.S.
lawmakers were making progress towards an agreement on raising
the country's borrowing limit to avoid a debt default.
    
    FUNDAMENTALS
    * Spot gold rose 0.3 percent to $1,688.21 an ounce by
0043 GMT, after gaining 1.3 percent in the previous week.
    * U.S. gold was little changed at $1,688.30.
    * U.S. House Republican leaders on Friday said they would
seek to pass a three-month extension of federal borrowing
authority next week to buy time - on pain of losing their own
paychecks - for the Democratic-controlled Senate to pass a
budget plan that shrinks budget deficits. 
    * U.S. Senate Democrats for the first time in more than
three years will pass a budget, a senior Democratic lawmaker
said on Sunday, fulfilling a basic task that Republicans have
been urging them to do. 
    * U.S. consumer sentiment unexpectedly deteriorated for a
second straight month to its lowest in over a year in January,
with many consumers citing fallout from the recent "fiscal
cliff" debate in Washington, a survey released on Friday showed.
 
    * Italy's central bank cut its forecast for the country's
shrinking economy on Friday, as tight credit conditions and a
gloomy international backdrop darken the domestic outlook before
a national election in February. 
    * Speculators raised their net long positions 
in U.S. gold futures and options by 8 percent on the week to
99,458 contracts in the week ended Jan. 15, said U.S. Commodity
Futures Trading Commision. Net length in silver 
also increased. 
    * For the top stories on metals and other news, click
, or 
    
    MARKET NEWS
    * The Dow and S&P 500 closed at five-year highs on Friday as
the market registered a third straight week of gains on a solid
start to the quarterly earnings season. 
    * The yen sank to a fresh 2-1/2 year low against the
greenback on Monday with investors giving the currency a wide
berth in the lead up to a Bank of Japan meeting that could see
the central bank commit to aggressive reflationary policy.
 
    
    DATA/EVENTS
 0700  Germany    Producer prices       Dec                   
 1600  Eurogroup meeting in Brussels
   
    PRICES
    
    Precious metals prices 0043 GMT
  Metal             Last    Change  Pct chg  YTD pct chg    Volume
  Spot Gold        1688.21    4.87   +0.29      0.82
  Spot Silver        32.01    0.17   +0.53      5.71
  Spot Platinum    1674.49    7.24   +0.43      9.09
  Spot Palladium    720.75    3.03   +0.42      4.15
  COMEX GOLD FEB3  1688.30    1.30   +0.08      0.75         3597
  COMEX SILVER MAR3  32.03    0.09   +0.29      5.94         1054
  Euro/Dollar       1.3305
  Dollar/Yen         89.83
  COMEX gold and silver contracts show the most active months  
 
 (Reporting by Rujun Shen; Editing by Himani Sarkar)