* Gold gains from investor risk appetite as euro rises
* Platinum, palladium firm on equity strength, S.Africa
* Coming up: Greece's parliament votes on austerity package
(Updates throughout with comment, details; refreshes prices;
By Amanda Cooper
LONDON, June 29 Gold rose for a
second day on Wednesday as growing certainty
that Greece will approve steep budget cuts boosted the euro and
other risk-related assets such as commodities and
Gold often declines in periods of greater
investor appetite, but any flickers of optimism over a solution
to the Greek debt crisis have also resulted in a rise in the
euro against the dollar, which has cushioned the bullion price.
Light physical buying in Asia also helped support prices,
although the volume was seen as insufficient to send spot gold
above its recent trading range, dealers said.
Spot gold was last up 0.5 percent at
$1,5 08.11 an ounce by
0953 GMT, countering losses seen
earlier in the week that took the price below $1,500, while
COMEX gold GCcv1 rose
0. 6 percent to
$1,509 .2 0.
" If you take a look at gold over the last few
days we were v ery surprised that the price
couldn't profit from the higher risk aversion among
market participants and we would have expected the gold price go
higher, instead of falling below $1,500," said Commerzbank
analyst Daniel Briesemann.
"By now we think (the
Greek vote) should be priced and the gold price
shouldn't react to a l arge ext ent
if the austerity package is really
approved later in the day ."
Greece remains in focus, as its parliament is scheduled to
vote on an austerity package demanded by international lenders
as part of a massive bailout later on Wednesday.
MARKETS WARY OF GREECE
Market activity has been thin as a result of combination of
sluggish seasonal demand and lack of market-moving factors on
the macroeconomic picture.
"There are still reasons to buy gold, but just not any new
reason for now," said Yingxi Yu, an analyst at Barclays Capital.
"Market participants are generally positive on gold, but it
is a question whether now is the right time to enter the market
given the volatility in risky assets such as equities and oil in
The 19-commodity Reuters-Jefferies CRB index rose 1.7
percent on Tuesday, its biggest daily rise in nearly six weeks,
as investors bet that Greece will approve the austerity plan and
avoid defaulting its debt.
HSBC said in a note that the Greek debt crisis has
prompted some flight-to-quality flows, but these have been
directed more into other perceived safe-haven assets such as the
Swiss franc and U.S. Treasuries , rather than
" The gold market may not have
dropped enough to invite substantial
emerging market and safe haven buying to emerge. Longer term, we
remain bullish. The strength of the CHF
shows there is still plenty of nervous safe haven buying that
could easily shift into gold ,"
said HSBC analyst James Steel.
Judging by the inflows into exchange-traded funds
backed by ph ys ical metal, investors have
been buying gold, pushing up global ETF holdings of bullion by
nearly half a million ounces in the last two weeks,
according to Reuters data.
So far this year, however, ETF holdings of gold are
still down by about 0.2 percent or 185,000 ounces, in stark
contrast to last year, when the burgeoning euro zone debt crisis
fed strong demand for gold ETFs.
Analysts said that in spite of the current uncertainty, the
longer-term outlook for gold prices remained positive, as low
interest rates in the United States, uncertainties in euro
zone's fiscal situation, and high inflation in major emerging
economies are likely to retain its appeal.
Platinum group metals rose for a second day, following
strength in global equities, which were lifted by optimism over
a positive outcome for the Greek austerity vote.
Concerns over power supply in South
Africa, the world's top producer of
platinum , also helped
support prices, which fell to three-month
lows earlier in the week .
The National Union of Mineworkers in South Africa on Tuesday
called its members for a strike at power firm Eskom, which
supplies 95 percent of the country's power.
Spot platinum was last up 1.1 percent at $1,707.49 an
ounce, while palladium rose 0.6 percent to $740.47.
Platinum and palladium have wide industrial applications,
and are key ingredients in autocatalysts.
(Additional reporting by Rujun Shen in Singapore; Editing by