August 20, 2003	Wednesday	Jumadi-us-Sani 21, 1424

LONDON, Aug 19: Gold prices were firmer in Europe on Tuesday, buoyed by fund buying with the market partly shrugging off a weak euro, which makes the dollar-denominated asset more expensive for holders of the single currency.

The market instead favoured slightly weaker-than-expected US data, which took the heat out of warming sentiment on economic recovery.

After a bout of profit taking on Monday, which saw the metal lose more than $5 an ounce in Europe due to a strengthening dollar, bullion crawled up overnight in Asia.

It ignored the euro’s drop to a 3-1/2 month low and buoyant equities as bargain hunters emerged to buy the dips in a quiet market.

Geopolitical tensions also figured in the mix, with a massive bomb blast at the United Nations headquarters building in Baghdad adding to bullion’s safe-haven appeal as initially bearish funds piled into the market for the London afternoon fix at $360.40 an ounce.

Spot gold closed on a positive note in Europe on Tuesday, at $360.00/360.80 an ounce.—Reuters