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PRECIOUS-Gold retreats from 2-mth peak; econ worries hang







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01/09/2010 00:51 London time | story: 601383

SHANGHAI, Sept 1 (Reuters) - Gold prices edged lower on Wednesday, after the uncertain economic outlook drove gold to a two-month peak on Tuesday.

FUNDAMENTALS

* Spot gold <XAU=> was down $3.24, or 0.3 percent, to $1,245.75 an ounce by 0016 GMT after having hit a two-month high of $1,249.90 on Tuesday.

* U.S. gold futures for December delivery <GCZ0> inched down 0.2 percent to $1,248.1 an ounce.

* The uncertainties in the economic outlook helped propel gold to its biggest monthly gain in August. A fresh batch of data from the United States showed a modest rise in U.S. consumer confidence and home prices, but slower business activity in the U.S. Midwest. [ID:nN31237504]

* The Federal Reserve said it would launch fresh support only if the U.S. economy deteriated "appreciably", according to minutes of the central bank's last policy meetings. [ID:nN31253959]

* The world's largest gold-backed exchange-traded fund, SPDR Gold Trust <GLD.P>, said its holdings rose to 1,302.508 tonnes by Aug. 31, from 1,298.556 tonnes on Aug. 27.

* Investors must be cautious in investing in gold and alert to gold prices "plunges" caused by heavy selling by overseas central banks, said a researcher with China's central bank. [ID:nTOE67U09P]



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MARKET NEWS

* The yen edged up toward a 15-year peak against the dollar on Wednesday, having shrugged off this week's monetary easing by the Bank of Japan and putting the focus on whether Japan will intervene to stem the yen's rise. [USD/]

* U.S. stocks ended little changed in choppy trading on Tuesday, closing out an August the bulls would like to forget.[.N]

DATA/EVENTS

* 0130 GMT Australia Q2 gross domestic product

* 0600 GMT German July retail sales

* 0753 GMT German August manufacturing PMI

* 0758 GMT Euro zone August manufacturing PMI

* 1215 GMT U.S. ADP August empoyment report

* 1400 GMT U.S. July construction spending

RELATED NEWS > Obama: U.S. economy must be "central mission" [ID:nLDE67T0UW] > Fed mulls stimulus if outlook worsens [ID:nN31253959] > S.Korea c.bank reaffirms tightening policy [ID:nTOE67U096] > US consumer confidence, home prices edge up

[ID:nN31237504] > Wall Street ends dismal month on flat note

[ID:nN31261350] > Australia manufacturing growth slows in August [ID:nSGE67U0KU] > China official repeats property mkt curbs [ID:nTOE67U08V] > US oil slumps on economy, drops 8.9 pct in Aug [ID:nSGE67U05X] > Euro zone Aug inflation, jobless [ID:nLDE67U10E] > Canada economy slows sharply in second quarter [ID:nN31202447] > German jobless drop helps broaden recovery [ID:nLDE67U0LJ] > US turns down China FX probes in two cases [ID:nN31249414]

PRICES Precious metals prices at 0016 GMT Metal Last Change Pct chg YTD pct chg Turnover Spot Gold 1245.75 -3.24 -0.26 13.69 Spot Silver 19.32 -0.02 -0.10 14.80 Spot Platinum 1517.00 0.60 +0.04 3.41 Spot Palladium 497.50 0.80 +0.16 22.69 TOCOM Gold 3381.00 35.00 +1.05 3.74 12170 TOCOM Platinum 4134.00 20.00 +0.49 -5.64 4347 TOCOM Silver 52.70 1.20 +2.33 1.93 149 TOCOM Palladium 1353.00 23.00 +1.73 16.14 60 Euro/Dollar 1.2675 Dollar/Yen 84.16 TOCOM prices in yen per gram. Spot prices in $ per ounce. (Reporting by Rujun Shen and Jacqeline Wong; Editing by Clarence Fernandez)









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