MARKET TALK: Physical Gold Demand Picks Up In Europe - UBS

Physical gold demand out of India and China remains
slow, however buying out of Europe has picked up slightly over the past couple
of days ahead of a closely-watched EU summit, says UBS. "With European leaders
scheduled to meet later today, it will be interesting to observe the trend of
these purchases as the European public weighs up the options that the region
may take in the weeks and months ahead," the bank says. An ECB rate decision is
also due today, and a cut in interest rates should also be supportive for
prices. Spot gold down $2.58 at $1,738.92/oz.