SINGAPORE, July 12 (Reuters) - Spot gold steadied above
$1,550 on Tuesday, as investors fled riskier assets to buy
bullion on mounting fears that the debt crisis could spread to
Italy and other nations in the euro zone.	

 FUNDAMENTALS	

 * Spot gold was little changed at $1,554.61 per ounce
by 0039 GMT, off $1,556.59 hit in the previous session -- its
highest since June 22.	

 * U.S. gold GCcv1 gained 0.4 percent to $1,555.10.	

 * Euro zone finance ministers promised cheaper loans, longer
maturities and a more flexible rescue fund on Monday to help
Greece and other EU debtors in a bid to stop financial contagion
engulfing Italy and Spain. 	

 * Adding to the uncertainties, U.S. President Barack Obama
and top U.S. lawmakers fell short on Monday of finding enough
spending cuts for a deal to avoid an Aug. 2 debt default and
Republicans came under fresh pressure to agree to tax hikes.
 	

 * Spot silver rose 0.7 percent to $35.92. It hit a
one-month high of $36.89 in the previous session.	

 * U.S. silver SIcv1 also gained 0.7 percent to $35.95.