Gold rebounds 0.6 percent; euro zone debt woes support

(Reuters) - Gold prices rebounded on Tuesday from a sell-off in the previous session, as the sovereign debt crisis in Europe remains supportive of safe-haven demand in bullion.

FUNDAMENTALS

* Spot gold gained 0.6 percent to $1,824.09 an ounce by 0025 GMT, after shedding more than 2 percent in the previous session.
* U.S. gold rose 0.8 percent to $1,827.60.
* Heightening fears of a potential Greek debt default hammered the euro and equities on Monday, and sparked a sell-off in gold as investors took profit off their gold bets to cover losses in other markets.
* But bullion remains supported by demand from investors fleeing riskier assets during economic turmoil.
* U.S. Treasury Secretary Timothy Geithner makes a one-day trip to Poland this week for an unprecedented meeting with euro zone finance ministers.
* China's central bank said the country's inflation, though easing in August, was still too high and it would maintain its monetary policy settings. High inflation is likely to benefit the country's demand for gold, seen as a good inflation hedge.

MARKET NEWS

* The euro held above a seven-month low against the greenback in Asia on Tuesday after a whippy session overnight saw a wave of short-covering lift it more than two cents on hopes that China would bolster Italy by buying its bonds.
* U.S. stocks rose on Monday, bouncing back in late trading, as hopes for Italy to get financial support from China tempered investors' worst fears over the euro zone's sovereign debt crisis. .N
(Reporting by Rujun Shen; Editing by Clarence Fernandez)

Emas dan Perak Rebound di Perdagangan Elektronik

Monexnews -  Kontrak emas pulih di perdagangan elektronik hari Selasa, seiring adanya laporan dari Cina yang mempertimbangkan akan membeli obligasi Italia yang memberikan kecerahan terhadap krisis hutang Eropa, dan memberikan sedikit dukungan untuk sentimen investor.
Kontrak untuk emas bulan Desember bertambah $16.40, menjadi $1,829.70 per troy ounce di COMEX, bagian dari NYMEX selama perdagangan di Asia.

CIBC’s “Golden Outlook” Includes $2,200 by 2013

CIBC was the latest investment bank to raise its gold price forecasts, and now sees the yellow metal reaching $2,200 per ounce by 2013.
In a report published this morning, CIBC World Markets analyst Barry Cooper lifted his average gold estimates to $1,625 from $1,550 in 2011, and to $2,000 from $1,700 in 2012.  He also introduced a $2,200 estimate for 2012.
“With the recent debt issues in both the U.S. and Europe, and weak economic data coming out of both sides of the Atlantic, we believe the safe haven characteristics of gold will again play an important role in the performance of the metal,” he wrote.
Cooper went on to say that “The robust outlook for bullion remains intact as we continue to see debasing of currencies as the key contributor to gold’s rise. With the S&P ratings downgrade of U.S. debt and a weak economic outlook, talk of another round of QE3 (or some form of it) is alive and well. Additionally, it looks like Europe’s debt issues are poised to increase after initial help for Greece that in all likelihood is going to cascade to other nations in debt default probability such as Portugal, Spain, Ireland, and Italy. A discussion led by Germany and France did not amount to a solution to resolve issues that continue to impact the EU. Unlike the U.S. however, the EU is limited in its ability to print money since no one country can solve its own problems by issuing deflated currency. Collectively, that problem may manifest itself down the road with the Euro suffering the same declines as witnessed with the U.S. dollar over most of the past decade.”

source: http://www.goldalert.com/2011/09/cibcs-golden-outlook-includes-2200-by-2013/