Singapore (Platts)--4Jun2007

Spot gold prices rebounded above $670/oz, opening at $671.50-672/oz in
Hong Kong Tuesday morning, up from Monday's close of $669.20-669.70/oz.
     Local traders said the spot gold price inherited the firmer level from
the New York trading session on Monday.
     One trader said New York trade was very quiet with spot gold seeing a
very narrow spread. "The US dollar was slightly weaker and the oil price was
also slightly firmer, thereby giving limited impact to the spot gold price. A
firm direction for gold remained lacking," one trader said.
     Another trader concurred with the slow moving New York trade. "August
gold closed 60 cents lower at $676.30 in volatile trade, while July crude oil
closed $1.13 higher at $66.21/bbl on renewed supply worries," he added.
     He said the US dollar fell on profit-taking in early trade on Monday, and
opened lower in New York at Yen 121.90 from Yen 122.01 at Friday's close while
the euro rose to $1.3470 from $1.3441. The US dollar then remained weak as
investors turned their attention back to interest rates, and bought
high-yielding currencies aggressively. At the close, the US dollar stood at
Yen 121.77 and $1.3483 per euro. 
     "The Asia morning saw a mix of profit-taking and short-covering
activities. Trade, however, was thin as most players were holding back on the
lack of a firm and clear direction in the spot gold price," the first trader
said.
     The second trader said spot gold may test resistance at $675/oz where a
breach would shift focus to $681/oz and buying can be considered on dips
towards $666/oz with stops at $662/oz. 
     Some key economic indicators include May UK Halifax house price, May
German services index, May Eurozone services index, May UK services index,
April Eurozone retail sales and May US ISM non-manufacturing index.
     Meanwhile, gold futures trading on the Tokyo Commodity Exchange settled
mixed at the end of a slow moving Tuesday morning session, settling between
Yen 2,628-2,655($21.59-21.81)/g for the June 2007-April 2008 contracts. 
     The June 2007, December 2007 and April 2008 contracts each slipped Yen
1/g from Monday's close, while the August 2007 contract inched up Yen 2/g from
the previous day's close. Both the October 2007 and February 2008 contracts
remained unchanged. Turnover totaled 19,608 contracts at the end of the
Tuesday morning session, compared with 41,692 contracts at the end of the
morning session on Monday, indicating a quiet morning session at the TOCOM.