London (Platts)--7Aug2007

Gold was indicated slightly lower in London morning trade Tuesday, but
had found support around the $670/oz level, a UK-based analyst said.
     Spot bullion was bid at $669.20-669.75/oz at 0913 GMT, dipping from its
late New York spot price at $670.30/oz and lower still from its Monday
afternoon fix in London at $671.50/oz.
     Bulliondesk.com analyst James Moore said gold had found support at the
$670/oz level on Tuesday morning, with buying seen in the TOCOM market,
"although further resistance is expected around $675 as Central bank sales
overhang the market."
     He noted that in addition the recent flooding around the India/Bangladesh
border might see jewelry related sales come back into the market. "However we
expected scaled down support to be found around $665/661/650 with the metal
set to hold around $650-75 for the summer holiday period," he added.
     Moore said heavy selling pressure in the energy sector on Monday had
prompted some profit taking in the precious complex, with gold and silver
closing with modest losses. "Both have been relatively steady so far this
morning, meanwhile platinum has been under pressure, trading back towards
support at $1,275/oz," he said.
     Moore said the dollar was relatively steady so far on Tuesday morning
with economic data from the US Tuesday showing second quarter productivity,
forecast at 1.5%, as well as the release of the minutes from the last FOMC
meeting.
     In the currency markets, the euro was at $1.3790 at 0913 GMT inching up
from $1.3770 at 1500 GMT on Monday, while the yen was at Yen 118.77, pulling
back against the dollar from Yen 118.10 on Monday.