June 15, 2012 / 9:55 AM / 5 years ago

PRECIOUS-Gold up for 6th day on Greece fears, hopes of easing

5 Min Read

* Buyers cautiously add safety bets ahead of Greek elections
    * Bullion on track for first six-day win streak in 10 months
    * Gold notches 2 pct weekly gain on U.S. easing talk
    * Coming up: Greek elections on Sunday

 (Adds comment, updates market activity)	
    By Frank Tang	
    NEW YORK, June 15 (Reuters) - Gold rose on Friday for a
sixth consecutive session as investors bet on additional
stimulus by central banks and hedged against economic
uncertainty ahead of key Greek elections on Sunday.	
    The metal gained 2 percent on the week, underpinned by hopes
of further U.S. monetary easing on signs that the American
economy's recovery is on shaky ground. Friday's weak U.S.
manufacturing output and consumer sentiment data fed that
attitude. 	
    Gold's investment appeal as a hedge against economic
weakness increased as central banks stood ready for any turmoil
from Greece's elections, which could be the country's first step
toward a chaotic break from the euro zone.	
    "The more the debt crisis accelerates in Europe, the more
likely we will see the fear trade back into gold, and the more
likely we are to see the Federal Reserve is going to use the
opportunity to initiate economic stimulus," said Jeffrey Sica,
chief investment officer at SICA Wealth Management LLC, which
oversees $1 billion in assets.	
    Spot gold was up 0.3 percent at $1,626.61 an ounce by
3:05 p.m. EDT (1905 GMT). The last time bullion posted a six-day
winning streak was in August.	
    U.S. COMEX gold futures for August delivery settled
up $8.50 at $1,628.10 an ounce, with trading volume about 60
percent below its 30-day average, preliminary Reuters data
showed.	
    On charts, gold extended gains above its key support at its
50-day moving average, but analysts said the metal must break
above its one-month high in the $1,640 area to rise further.
Bullion rose toward that level several times recently but failed
in each attempt.	
    	
    ALL EYES ON GREECE, EURO ZONE	
    Gold's price volatility could rise, depending on the outcome
of the Greek elections and any subsequent commitment by euro
zone countries to deal with the region's economic crisis. 	
 	
    "While the broad macroeconomic and political picture appears
to be gold-friendly, we do not believe investors will take
substantial positions ahead of the Greek elections," said James
Steel, chief commodity analyst at HSBC.	
    "Should difficulties in funding (euro-zone) fiscal positions
materialize, investors could seek hard assets including gold,"
Steel said.	
     Among other precious metals, silver was up 0.3
percent at $28.67 an ounce.	
    Investors' confidence in silver was battered by two sharp
corrections in 2011, which saw the metal lose a third of its
value in the six sessions after it hit record highs last year.
It fell 36 percent in three days in September.	
    Spot platinum was down 0.5 percent at $1,478.75 an
ounce, while spot palladium was down 1.3 percent at
$621.97 an ounce.	
    	
 3:05 PM EDT     LAST/    NET   PCT      LOW    HIGH  CURRENT
                SETTLE   CHNG  CHNG                       VOL
 US Gold AUG   1628.10   8.50   0.5  1620.40 1635.40  111,938
 US Silver JUL   28.74  0.333   1.2   28.480  28.820   28,454
 US Plat JUL   1487.20  -0.40   0.0  1481.30 1498.90    6,807
 US Pall SEP    630.40  -4.50  -0.7   624.05  641.90    2,018
                                                              
 Gold          1626.61   4.31   0.3  1620.50 1633.20         
 Silver         28.670  0.080   0.3   28.580  28.830
 Platinum      1478.75  -7.78  -0.5  1484.65 1498.50
 Palladium      621.97  -7.91  -1.3   626.35  639.25
                                                              
 TOTAL MARKET              VOLUME          30-D ATM VOLATILITY
                CURRENT   30D AVG  250D AVG   CURRENT     CHG
 US Gold        116,209   216,279   196,767     24.61   -0.04
 US Silver       37,048    50,322    53,713     34.35    1.79
 US Platinum      8,416     8,686     8,063        23    5.00
 US Palladium     2,065     5,839     4,520                  
                                                              
 	
	
 (Additional reporting by Jan Harvey and Maytaal Angel in
London; Editing by Bob Burgdorfer)

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