London (Platts)--15Jun2007

Gold prices were indicated modestly lower in morning European trade
Friday but the market was holding in its broad $648-653/oz range, with
attention focused on US consumer price data due later in the day.
     Spot bullion was indicated at $650.85-651.35/oz at 0800 GMT, down from
Thursday's London afternoon fix at $653.25/oz and off marginally from
overnight levels in Asia.
     "Look out today for the CPI for the spark for any significant moves out
of current ranges," Standard Bank London said in its daily web site report.
     Any major selling should be looking to the major support around the
200-day moving average at $638/oz, Standard said, adding that a breach of this
level "looks particularly bearish down to $633." On the upside, first
resistance is still pegged at $655/oz, but any strength through here might
have traders eyeing $662/oz, the bank suggested.
     The euro was bid at $1.3313 at 0800 GMT, in line with the previous day's
close at $1.3310.
     The US consumer price index for May is due for release at 1230 GMT, with
consensus forecasts suggesting a 0.6% increase following April's 0.4%
seasonally adjusted rise.