PRECIOUS-Gold edges up as US debt ceiling talks progress
SINGAPORE, Jan 21 (Reuters) - Gold inched up on Monday, reversing losses from the previous session on signs U.S. lawmakers were making progress towards an agreement on raising the country's borrowing limit to avoid a debt default.
* Spot gold rose 0.3 percent to $1,688.21 an ounce by 0043 GMT, after gaining 1.3 percent in the previous week.
* U.S. gold was little changed at $1,688.30.
* U.S. House Republican leaders on Friday said they would seek to pass a three-month extension of federal borrowing authority next week to buy time - on pain of losing their own paychecks - for the Democratic-controlled Senate to pass a budget plan that shrinks budget deficits.
* U.S. Senate Democrats for the first time in more than three years will pass a budget, a senior Democratic lawmaker said on Sunday, fulfilling a basic task that Republicans have been urging them to do.
* U.S. consumer sentiment unexpectedly deteriorated for a second straight month to its lowest in over a year in January, with many consumers citing fallout from the recent "fiscal cliff" debate in Washington, a survey released on Friday showed.
* Italy's central bank cut its forecast for the country's shrinking economy on Friday, as tight credit conditions and a gloomy international backdrop darken the domestic outlook before a national election in February.
* Speculators raised their net long positions in U.S. gold futures and options by 8 percent on the week to 99,458 contracts in the week ended Jan. 15, said U.S. Commodity Futures Trading Commision. Net length in silver also increased.
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* The Dow and S&P 500 closed at five-year highs on Friday as the market registered a third straight week of gains on a solid start to the quarterly earnings season.
* The yen sank to a fresh 2-1/2 year low against the greenback on Monday with investors giving the currency a wide berth in the lead up to a Bank of Japan meeting that could see the central bank commit to aggressive reflationary policy.
0700 Germany Producer prices Dec
1600 Eurogroup meeting in Brussels
Precious metals prices 0043 GMT
Metal Last Change Pct chg YTD pct chg Volume Spot Gold 1688.21 4.87 +0.29 0.82 Spot Silver 32.01 0.17 +0.53 5.71 Spot Platinum 1674.49 7.24 +0.43 9.09 Spot Palladium 720.75 3.03 +0.42 4.15 COMEX GOLD FEB3 1688.30 1.30 +0.08 0.75 3597 COMEX SILVER MAR3 32.03 0.09 +0.29 5.94 1054 Euro/Dollar 1.3305 Dollar/Yen 89.83
COMEX gold and silver contracts show the most active months
(Reporting by Rujun Shen; Editing by Himani Sarkar)