SINGAPORE, March 7 (Reuters) - Gold regained some ground on Wednesday
as jewellers in Asia snapped up the metal after prices dropped 2 percent in the
previous session, but investors were cautious because of lingering fears about a
possible Greek default. 	
    Worries that Greece may not secure a deal with private creditors to cut its
debt by the Thursday deadline spurred selling in shares, but pressure from the
equity market was offset by a bounce in the euro and physical gold offtake. 	
     Spot gold added $2.92 to $1,676.86 per ounce by 0240 GMT, having hit
a low of $1,663.95 on Tuesday, the weakest since Jan. 25. Bullion struck a
record around $1,920 per ounce last September.	
     "Basically gold and other risky assets are all being lumped together.
Nobody is really looking at individual fundamentals. They are just buying the
dollar and pretty much selling everything else," said Nick Trevethan, a senior
commodity strategist at ANZ in Singapore. "The markets are very worried about
risk, and for the time being, gold has been painted as a risk asset. The
downside potential for gold is $1,650-$1,660. I am not sure if it's going to
happen today as we are starting to see decent physical buying at these lower
numbers." 	
     U.S. gold for April delivery rose 0.33 percent to 	
$1,677.70 per ounce.	
    	
    Shares in Asia slipped for a third consecutive session on Wednesday as
investors grew more risk averse, with uncertainty over Greece's bailout and
mounting worries about slowing global economies overshadowing support provided
by ample liquidity. 	
    The euro stood at $1.3112, having struck a three-week low at $1.3101.
A clutch of Greek pension funds and some foreign investors are still holding
back on the bond swap deal, prompting Athens to warn that it will force losses
on those who do not sign up.  	
    "There's bargain-buying. Jewellery makers are still buying, but they are not
that aggressive. Premiums for gold bars are now at $1 to $1.50 because of the
purchases," said a dealer in Hong Kong, who offered gold bars at around $1 last
week.	
    "I think the market is waiting for U.S. non-farm payroll data for clues on
whether the United States will launch QE3," said the dealer, referring to a
possible third bond-buying programme to lower interest rates. 	
    But The U.S. economy likely recorded a third month of solid job gains in
February, which could further reduce the chances of additional monetary stimulus
from the U.S. Federal Reserve. 	
    The Labor Department is due to release the February employment 	
report on Friday at 8:30 a.m. EST (1330 GMT)	
    In Singapore, physical dealers also noted buying from jewellers in the
region. 	
    "Indonesia continues to buy gold in small volumes and we saw good buying
from the Far East last night," said a dealer in Singapore, who offered bullion
at premiums of 70 cents to $1 to London prices. 	
    In the energy market, U.S. crude oil futures were steady in post-settlement
trading after news that major powers had accepted Iran's offer for talks about
its disputed nuclear programme, easing concern about supply disruptions.
  	
     	
  Precious metals prices 0240 GMT
  Metal             Last    Change  Pct chg  YTD pct chg    Volume
  Spot Gold        1676.86    2.92   +0.17      7.23
  Spot Silver        32.90   -0.01   -0.03     18.82
  Spot Platinum    1622.00   13.01   +0.81     16.44
  Spot Palladium    673.00    9.28   +1.40      3.14
  COMEX GOLD APR2  1677.70    5.60   +0.33      7.08         8453
  COMEX SILVER MAY2  32.95    0.17   +0.51     18.04         1515
  Euro/Dollar       1.3141
  Dollar/Yen         80.79
 
  COMEX gold and silver contracts show the most active months
 	
 (Editing by Chris Lewis)

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