PRECIOUS-Gold flat as U.S. fiscal talks deadlock

Reuters Middle East

SINGAPORE, Dec 4 (Reuters) - Gold was little changed on

Tuesday, as the uncertainty in the U.S. budget talks kept

investors cautious, offsetting the upbeat sentiment after Greece

and Spain made some progress in solving their debt crisis.


* Spot gold traded nearly flat at $1,715.14 an ounce

by 0031 GMT.

* U.S. gold inched down 0.3 percent to $1,715.90.

* Republicans proposed steep spending cuts on Monday but

gave no ground on President Barack Obama's call to raise taxes

on the wealthiest in their first formal proposal to avert a

"fiscal cliff" that could push the U.S. economy into recession.

* Greece said it would spend 10 billion euros to buy back

bonds at a price range that topped market expectations, boosting

hopes it can cut its ballooning debt and unlock long-delayed


* Spain on Monday made a formal request for an aid of 39.5

billion euros ($51.4 billion) of European funds to recapitalise

its crippled banking sector.

* Chinese manufacturing output grew last month for the first

time in more than a year but a surprise contraction in U.S.

factory activity tempered optimism about the health of the world


* Holdings of SPDR Gold Trust, the world's largest

gold-backed exchange-traded fund, remained at a record high

level of 1,348.826 tonnes.

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* U.S. stocks struggled to extend the previous week's gains,

dropping on Monday as disappointing U.S. factory numbers

dampened optimism about China's economic growth.

* The euro rose slightly in early Asian trading on Tuesday,

moving back towards a six-week high against the dollar and a

seven-month high against the yen marked a day earlier on upbeat

news from Spain and Greece.


0330 Australia RBA cash rate Dec

1000 Euro zone Producer prices Oct

1100 Brazil Industrial output Oct

1245 U.S. ICSC weekly chain store sales

1355 U.S. Redbook weekly retail sales

1445 U.S. ISM-New York index Nov


Precious metals prices 0031 GMT

Metal Last Change Pct chg YTD pct chg Volume

Spot Gold 1715.14 0.29 +0.02 9.68

Spot Silver 33.57 -0.04 -0.12 21.24

Spot Platinum 1601.50 0.75 +0.05 14.97

Spot Palladium 685.72 -0.08 -0.01 5.09

COMEX GOLD DEC2 1715.90 -5.20 -0.30 9.52 1733

COMEX SILVER MAR3 33.66 -0.10 -0.31 20.56 317

Euro/Dollar 1.3050

Dollar/Yen 82.15

COMEX gold and silver contracts show the most active months

(Reporting by Rujun Shen; Editing by Eric Meijer)

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