Gold stays firm amid euro debt crisis (Reuters) (12-01-2011)

SINGAPORE – Bullion was up in thin trade on Wednesday supported by high oil prices amid worries over the euro zone debt crisis and a shortage of gold bars in Asia.

Spot gold rose $3.60 an ounce to $1,384.05 an ounce by 0449 GMT. Despite safe haven buying related to the crisis in the euro zone, bullion was well below a historical high of around $1,430 struck in December.         

Gold is estimated to rise further as demand from jewellers and investors picked up in India and China, leading to tighter stocks for gold bars in Singapore and Hong Kong while it is possible to retrace slightly to $1,372 per ounce before rebounding further to $1,392.   

U.S. gold futures for February were steady at $1,385 an ounce, having settled $10.2 higher on Tuesday.          

The world's largest gold-backed exchange-traded fund, SPDR Gold Trust , said its holdings slipped to 1,271.467 tonnes by Jan 11 from 1,272.682 tonnes on Jan 10.         

Silver rose to a one-week high on firm gold prices and purchases from investors and the industrial sector in China.

Source: Reuters