PRECIOUS-Gold off 4-week low, firm equities likely to weigh

old bounced on Wednesday
after falling to its weakest in nearly four weeks in the
previous session, but gains look set to be capped by firm
equities and renewed optimism over the U.S. economy.

    FUNDAMENTALS
    * Gold added $1.17 to $1,576.41 an ounce by 0030 GMT.
Gold fell to $1,573.39 on Tuesday, its lowest since March 8, as
investors shifted to equities after the benchmark S&P 500 index
 climbed to within striking distance of an all-time
intraday high.
    * U.S. gold for June was steady at $1,576.80 an
ounce.    
    * Dealers were awaiting the release of the U.S. nonfarm
payrolls report on Friday to confirm market views the Federal
Reserve wants to maintain its extremely accommodative monetary
policy, which has underpinned investor sentiment and sharpened
risk appetite. 
    * U.S. inflation is low and expectations remain well
contained, allowing the Federal Reserve to keep up aggressive
monetary policy measures to spur growth, Charles Evans,
president of the Federal Reserve Bank of Chicago, said on
Tuesday. 
     * For the top stories on metals and other news, click
, or 

    MARKET NEWS
    * Japan's Nikkei share average rose on Wednesday, as gains
in Wall Street helped the market recover from losses of more
than 3 percent in the past two days, while the euro remained
pressured by concerns about bailout consequences in Cyprus and
weak euro zone economies.   
    * U.S. crude futures slipped in early Asian trading on
Tuesday after data showed an unexpected slowdown in U.S.
manufacturing and on expectations that oil inventories would
continue to rise in the world's largest energy consumer. 

    DATA/EVENTS (GMT)
    0900 Euro zone Flash inflation 
    1215 U.S. ADP employment report 
    1400 U.S. ISM non-manufacturing index 

    PRICES

  Precious metals prices 0036 GMT
  Metal             Last    Change  Pct chg  YTD pct chg    Volume
  Spot Gold        1576.41    1.17   +0.07     -5.86
  Spot Silver        27.21    0.01   +0.04    -10.14
  Spot Platinum    1568.75   -0.75   -0.05      2.20
  Spot Palladium    766.22    2.22   +0.29     10.73
  COMEX GOLD JUN3  1576.80    0.90   +0.06     -5.91         2803
  COMEX SILVER MAY3  27.18   -0.07   -0.27    -10.11         1052
  Euro/Dollar       1.2813
  Dollar/Yen         93.52

  COMEX gold and silver contracts show the most active months
Source: http://www.reuters.com/article/2013/04/03/markets-precious-idUSL3N0CQ0YY20130403

PRECIOUS-Gold stretches gains as weak U.S. data hits dollar

Gold extended gains on
Tuesday, with the dollar dropping after disappointing U.S. data
stoked concerns about a patchy recovery in the world##Q##s largest
economy.
    But investors were loth to build positions too much ahead of
payrolls data on Friday, which will shed more light on the
strength of the U.S. pickup. 
    Gold hit an intraday high of $1,603.60 an ounce and
was steady at $1,599.20 by 0655 GMT. It rallied to a 1-month
peak in March on worries about fiscal stability in Europe, as
politicians scrambled to clinch a bailout for Cyprus.
    "I think sentiment is neutral. (Gold) can##Q##t break through
$1,620-$1,625, but on the downside, we can say $1,590-$1,585
seems to be the floor," said Ronald Leung, director of Lee
Cheong Gold Dealers in Hong Kong.
     "I think the U.S. economy will still continue to recover.
The economy in the U.S. is still improving - of course,
sometimes the pace is fast, sometimes it##Q##s slow."  
    U.S. factory activity grew at the slowest rate in three
months in March, indicating the economy lost some momentum at
the end of the first quarter. 
    But other recent data pointing to a strengthening economy
has helped push stocks to record highs on both the Dow and S&P
500. In theory, strong stock markets should prompt investors and
speculators to ditch gold and shift to equities. 

    U.S. gold for June was at $1,599.80 an ounce, down  
 $1.10 after hitting a high of $1,604.30.   
    "Offering some support going forward, is the renewed turmoil
in Europe in the wake of the Cyprus debacle and the Italian
political stalemate, coupled with the fact that budget
uncertainties in the U.S. and the debt ceiling debate remain
unresolved," INTL FCStone said in a monthly report.  
    "We see these crosscurrents in place for a little while
longer and expect a trading range market in gold of roughly
$1,560-$1,635 over the next month."
    The yen rose to a one-month high against the dollar as the
U.S. data prompted investors to sell the greenback, while
Japan##Q##s Nikkei stock average fell 1.1 percent to a nearly
four-week low on Tuesday.   
    The firmer Japanese yen dragged down gold contracts on the
Tokyo Commodity Exchange (TOCOM), with no signs of
buying related to tensions in the Korean peninsula. 
    Gold bars remained on par with spot London prices in Tokyo.
Premiums for gold bars were little changed in Singapore and Hong
Kong at $1.20 to $1.50 an ounce to spot London prices.

    "We saw buying interest from the general public on TOCOM
this morning, but then it disappeared. They don##Q##t want to buy or
sell because of the matters concerning North Korea," said a
dealer in Tokyo.
    "But of course if North Korea decides to use nuclear
weapons, then it will affect the market big time." 
    The United States has positioned a warship off the Korean
coast as a shield against ballistic missile attack as South
Korea##Q##s new president vowed swift retaliation against a North
Korean strike amid soaring tensions on the peninsula.

  Precious metals prices 0655 GMT
  Metal             Last    Change  Pct chg  YTD pct chg    Volume
  Spot Gold        1599.20    0.80   +0.05     -4.50
  Spot Silver        27.98   -0.03   -0.11     -7.60
  Spot Platinum    1587.00   -3.59   -0.23      3.39
  Spot Palladium    771.00   -8.00   -1.03     11.42
  COMEX GOLD JUN3  1599.80   -1.10   -0.07     -4.54        12006
  COMEX SILVER MAY3  27.95    0.01   +0.02     -7.54         4003
  Euro/Dollar       1.2856
  Dollar/Yen         92.88

  COMEX gold and silver contracts show the most active months
Source: http://www.reuters.com/article/2013/04/02/markets-precious-idUSL3N0CP05520130402