London (Platts)--5Sep2007

Better news coming out of the US is set to support London gold on
Wednesday despite increased selling in Asia overnight, according to one
European trader. 
     "We saw a bit of profit-taking yesterday, but we've done the retracement
now and I think we're on for a bit of a recovery," said the trader on
Wednesday. "I think the price could be heading towards the mid-$680s on
Wednesday as the subprime news coming out of the US is much better. So, as
long as there's no more surprises today we should be fairly steady." 
     London spot gold was indicated at $679.45/oz at 0908 GMT, after a Tuesday
PM fix of $678.75/oz and an AM fix of $673.50/oz Tuesday. The euro was bid at
$1.3592, up from Tuesday afternoon.