SINGAPORE, Dec 6 (Reuters) - Spot gold traded steady
on Tuesday, after posting its biggest daily loss in two weeks in
the previous session on fears of a possible credit rating
downgrade for euro zone nations by Standard &  Poor's.	
    	
    FUNDAMENTALS	
    * Spot gold was little changed at $1,720.79 an ounce
by 0023 GMT, after a 1.4-percent drop in the previous session.	
    * U.S. gold dropped 0.6 percent to $1,725.	
    * Standard &  Poor's on Monday warned it may carry out an
unprecedented mass downgrade of euro zone countries if EU
leaders fail to reach an agreement on how to solve the region's
debt crisis in a summit later this week. 	
    * The leaders of France and Germany agreed a master plan
involving treaty change on Monday to impose budget discipline
across the euro zone as a top rating agency piled on pressure
for a rapid solution to the EU debt crisis. 	
    * Cheap valuations offer potential for double-digit returns
on global equities in 2012, with emerging markets likely to do
especially well, the CIO of HSBC's wealth management division
said on Monday, adding he had raised equity exposure at the
expense of gold. 	
        	
    MARKET NEWS	
    * U.S. stocks gained on Monday, but the day's rally was
dampened by news that Germany and other top-rated European
nations could see their credit ratings cut. 	
    * The euro stayed on the backfoot in Asia on Tuesday after
Standard &  Poor's said it was reviewing the credit ratings of
euro zone countries, including top-rated Germany, for a possible
downgrade. 	
      	
    DATA/EVENTS	
 0330 Australia   RBA cash rate        Dec 2011              
 1100 Brazil      GDP yy               Jul 2011              
 1245 U.S.        ICSC chain stores yy Weekly                
 1400 Canada      BoC rate decision                          

* Market awaits Europe meeting next week
* Spot palladium on course for biggest weekly gain in 3
years
* Spot gold could fall to $1,722 - technicals
* Coming up: U.S. nonfarm payrolls, November  1330 GMT

    By Rujun Shen	

    SINGAPORE, Dec 2 (Reuters) - Spot gold was steady on
Friday, after the euphoria around a coordinated effort to inject
liquidity by central banks faded, ahead of a U.S. employment
report later today and a key euro zone summit next week.	
    The U.S. non-farm payrolls data is expected to show a pickup
in hiring in November, which could add to expectations of
stronger growth in the world's largest economy, just as
manufacturing data in the euro zone and much of Asia contracted
in November, pointing to a global slowdown.
  	
    News from Europe will continue to dominate sentiment.
Markets rallied earlier in the week after the world's major
central banks joined force to boost liquidity, but the momentum
quickly faded as investors realised that it could not solve
Europe's debt problems.	
    " The central banks' move reinforced the perception that
liquidity crunch is a big problem,"  said Hou Xinqiang, an
analyst at Jinrui Futures, adding that gold's property as a safe
haven has been overlooked in recent months and the gloom hanging
over the global economy is likely to suppress gold's sentiment.	
    " Liquidity is the focus of the market. Gold's appeal as a
safe haven may return only when liquidity improves and market
sentiment warms up." 	
    Spot gold edged down 0.1 percent to $1,742.20 an
ounce by 0709 GMT, but is on course to rise 3.7 percent from a
week earlier, its biggest weekly gain in a month.	
    U.S. gold inched up 0.4 percent to $1,746.30.	
    Technical analysis suggested spot gold could drop to $1,722
during the day, said Reuters market analyst Wang Tao.
 	
    	
    Investors will closely watch the European Council summit
next week. The new head of the European Central Bank signalled
that it stood ready to act more aggressively to fight the debt
crisis if policymakers agree on much tighter budget controls in
the euro zone. 	
    Supporting the sentiment in gold, South Korea's central bank
bought 15 tonnes of gold in November, following purchases of 25
tonnes in June and July, as central banks around the world,
especially in emerging economies, have aggressively bought
bullion over the past few months. 	
    " It's not a surprise, as gold seems to be the only thing
central banks can buy to diversify their reserves as economic
problems seem to spread around the world,"  said Ronald Leung, a
physical dealer at Lee Cheong Gold Dealers.	
    Norilsk Nickel expects autocatalyst metal
palladium to be in a deficit in 2012 due to sharply lower
Russian supplies, the world's biggest palladium producer's
marketing chief said on Thursday. 	
    Spot palladium gained 1.4 percent to $634.22, on
course for its biggest weekly gain since November 2008 with a
12.8 percent rise.