LONDON: Gold prices rose 0.8 in Europe on Monday as the dollar declined against the euro, with news that Dubai had avoided a potential debt default boosting higher-yielding currencies. in the US unit boosts gold's appeal as an alternative asset and makes dollar-priced commodities cheaper for holders of other currencies. "(Gold) has moved back above $1,125 this morning ahead of what is likely to be a busy week due to the scale of economic data set for release," said TheBullionDesk.com analyst James Moore. "As a whole we expect gold to remain on the defensive as investors continue to lock in profits ahead of year-end with the metal potentially dipping below $1,100," he added. PRICES Spot gold was bid at $1,123.40 at 0904 GMT from $1,113.85 late in New York on Friday. Silver was at $17.25 from $17.11. Platinum at $1,427.50 from $1,426. Palladium at $363 from $357.50. DATA/EVENTS Euro industrial production and employment data due at 1000 GMT. MARKET NEWS The euro rose on the dollar after news that Dubai had averted a possible debt default encouraged investors to rush back into riskier and higher-yielding currencies. Oil headed lower for a ninth straight session on Monday, but pared losses after news of a Dubai bailout, which boosted the euro against the dollar as risk appetite improved. Asian stocks rebounded on Monday after Dubai said it had received $10 billion from Abu Dhabi to repay debt, which pushed down the yen and boosted the euro and emerging Asian currencies as risk appetite improved. FUNDAMENTALS The world's largest gold-backed exchange-traded fund, SPDR Gold Trust, said its holdings stood at 1,116.247 tonnes as of Dec 11, unchanged from the previous business day. Platinum producer Sylvania Resources Ltd has raised 10 million pounds ($16.23 million) in a share issue to pay for ongoing projects and to buy a tailings dump from Lonmin Peru's government has given Minera Afrodita approval to start drilling on its gold and copper project, the company said on Friday, despite protests this year that escalated into hostage taking. TECHNICALS Gold support at $1,103 an ounce, resistance at $1,153 and 14-day RSI at 36.0. Platinum support at $1,403 an ounce, resistance at $1,458 and 14-day RSI at 29.5. * Silver support at $16.90 an ounce, resistance at $1,458 and 14-day RSI at 45.9.

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