Gold prices rose nearly 1 percent to a two-week high as the euro strengthened versus the dollar, with stronger US data and well-received corporate earnings reports curbing appetite for the US currency. The precious metal rose as high as $1 123.45 (R8 347) an ounce in early European trade. Improved physical demand after a drop in prices last week is also supporting gold, analysts said. "The recovery in physical demand in emerging markets and the rebuilding of longs by the macro hedge funds leave gold well positioned to trade higher," said HSBC in a note. PRICES * Spot gold was at $1 122.10 an ounce at 09:35 SA time compared with $1 113.95 late in New York on Tuesday. * Silver was at $16.84 from $16.68. * Platinum at $1 586.50 from $1 576.50. * Palladium at $441.50 from $439.50. DATA/EVENTS * Euro zone final services PMI for January, due 10:58 SA time. * Euro zone December retail sales, due 12:00 SA time. * US' Challenger, Gray & Christmas report on January job cuts, 14:30 SA time. * US ADP January employment report, 15:15 SA time. * US Institute for Supply Management January non-manufacturing index, 17:00 SA time. * US Treasury Secretary Timothy Geithner testifies on the White House FY 2011 budget before the House Ways and Means Committee, 17:00 SA time. MARKET NEWS * The euro held on to gains made on Tuesday as the dollar lost ground on stronger US earnings and data. The Australian dollar pared gains on the dollar as caution set in before an EU assessment of Greece's fiscal plan on Wednesday and key US jobs data at the end of the week. * Oil prices recovered losses made in Asian trade after posting its biggest percentage gain in four months on Tuesday. US crude for March delivery inched up 34 cents a barrel to $77.57. * Asian shares rose on Wednesday with energy and resources stocks leading the way, as demand for riskier assets increased after Wall Street rallied on upbeat US earnings and economic data. European stock index futures pointed to a higher open. FUNDAMENTALS * The world's largest gold-backed exchange-traded fund, SPDR Gold Trust, said its holdings stood at 1 111.922 tonnes as of February 2, unchanged from the previous business day. * Anglo Asian Mining said it produced 3 483 ounces of gold in January 2010, bringing total production to 14 848 ounces. * Highland Gold said its Mnogovershinnoye mine produced 163 208 ounces of gold in 2009, up 2.7 percent year on year. It added that it sees total output in 2010 at 200 000-210 000 ounces of gold and gold equivalents. * Toyota Motor Corp sales dropped 16 percent in January as the automaker reeled from a massive recall and rivals Ford Motor Co and General Motors Corp surged past it in the US market. Carmakers are the largest consumers of platinum group metals. * Honda, Japan's No. 2 carmaker, lifted its annual outlook for the third time after a recovery in global auto sales and a weaker-than-expected yen helped it to its strongest quarterly operating profit in a year and a half. TECHNICALS * Gold support at $1 107, resistance at $1 126, 14-day RSI at 61.7. * Silver support at $16.35, resistance at $17.01, 14-day RSI at 44.1. * Platinum support at $1 556, resistance at $1 589, 14-day RSI at 62.1. - Reuters

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