Gold eases below lifetime high; investors cover losses

Gold ticked lower on Friday after hitting a lifetime high in the previous session as
investors sold bullion to cover losses in other markets triggered by a global stampede out of riskier assets on fears of
a spreading debt crisis and slowing growth.

FUNDAMENTALS

* Spot gold eased $3.71 an ounce to $1,644.19 by 0004 GMT after hitting a record around $1,681 an ounce on Thursday
before losing some of the gains. 

* U.S. gold futures GCcv1 fell $12.7 to $1,646.3 an ounce -- off Thursday's record around $1,684 an ounce.

* The Nikkei benchmark is set to tumble on Friday, hit by sharp falls in the U.S. market as worries over the global
economy appear likely to dominate the mood, offsetting the impact of Japan's currency intervention and monetary easing the
previous day. 

* European policymakers tried to turn a more powerful fire hose on the euro zone debt crisis on Thursday but financial
markets were unimpressed with their response. 

* For the top stories on metals and other news, click  , or 

MARKET NEWS

* Japan has likely sold a record 4 trillion yen ($50.6 billion) so far in the currency market in solo intervention that
it began on Thursday and continued in overseas markets, the Nikkei newspaper said on Friday. 

* Oil tumbled as much as 6 percent on Thursday, with U.S. crude crashing through technical support to its lowest since
February as mounting fears of a stalled economy set off a global race from riskier assets. 

DATA/EVENTS [GMT) 

0800 Italy Industrial output yy WDA Jun 2011

0800 Italy GDP prelim yy Apr 2011           

1000 Germany Industrial output mm Jun 2011   

1230 U.S. Non-farm payrolls Jul 2011          

Precious metals prices 0004 GMT
  Metal             Last    Change  Pct chg  YTD pct chg    Volume
  Spot Gold        1644.19   -3.71   -0.23     15.83
  Spot Silver        39.04    0.23   +0.59     26.51
  Spot Platinum    1709.24   -8.56   -0.50     -3.30
  Spot Palladium    744.22    3.04   +0.41     -6.91
  TOCOM Gold       4183.00  -62.00   -1.46     12.17        71255
  TOCOM Platinum   4400.00 -139.00   -3.06     -6.30        10627
  TOCOM Silver       98.70   -7.00   -6.62     21.85          872
  TOCOM Palladium  1903.00 -117.00   -5.79     -9.25          441


  Euro/Dollar       1.4079
  Dollar/Yen         79.07

  TOCOM prices in yen per gram. Spot prices in $ per ounce.
  COMEX gold and silver contracts show the most active months

SOURCES : http://www.reuters.com/article/2011/08/05/markets-precious-idUSL3E7J500M20110805