* Gold to fall to $1,352.30/oz-technicals [ID:nL3E7CE027]
* Coming Up: U.S. CPI mm, SA Dec; 1330 GMT
(Updates prices)
By Lewa Pardomuan
SINGAPORE, Jan 14 (Reuters) - Bullion rebounded on Friday
as the euro lost strength despite better-than-forecast debt
auctions by Spain and Italy, while purchases from jewellers
and investors, which sent premiums for gold bars to two-year
highs, offered additional support.
Silver also bounced after falling more than 3
percent in the previous session, while platinum and
palladium held near their multi-year highs on the
prospect of more demand from investors and the industrial
sector.
Spot gold rose $3.95 to $1,376.70 an ounce by
0505 GMT after trading in a choppy $23 range on Thursday.
Bullion struck a lifetime high around $1,430 an ounce in
December on fears the euro debt crisis would spread.
"We've seen strong physical buying in Asia. It's still
going on," said Dick Poon, manager of precious metals at
Heraeus in Hong Kong. "I think gold is consolidating right
now. I am still bullish on gold and silver."
U.S. gold futures for February fell $10.1 to
$1,376.9 an ounce to track weakness in U.S. crude oil futures,
but the decline was ignored by players in the cash market.
Gold bars were offered at premiums of $3 an ounce to spot
London prices in Hong Kong, and at $1.5 in Singapore.
Wang Tao, a Reuters market analyst for commodities and
energy technicals, said gold is expected to fall to $1,352.30
per ounce, as the rebound from this level could have
completed, and a bullish target at $1,407 is aborted.
For a 24-hour gold technical outlook:
here
The euro took a breather on Friday, but was still on track
to post its best weekly performance against the dollar in 20
months, while equity markets were lacklustre with Japan's
Nikkei retreating from an 8-month peak.
European Central Bank President Jean-Claude Trichet
renewed a call for euro zone governments to boost the size and
scope of their 440 billion euro ($578.2 billion) rescue fund
and warned of short-term inflation pressures in the euro area.
Brent crude steadied above $98 on Friday after earlier
this week approaching triple-digit figures for the first time
in more than two years, outpacing U.S. benchmark prices,
which were dragged down by an increase in the country's
jobless claims.
Physical dealers noted purchases from jewellers in China
ahead of the Lunar New Year in February, where most Chinese
return home for the holidays and demand for jewellery
increases. Despite the demand from China and also top consumer
India, gold was struggling to revisit the $1,400 level.
"I think some sort of liquidation on the ETF has a bit of
impact on gold. But bargain hunting supports the prices
despite some disappointment that prices can't break through
$1,400," said a dealer in Hong Kong.
The world's largest gold-backed exchange-traded fund,
SPDR Gold Trust , said its holdings fell to 1,265.093
tonnes by Jan 13 from 1,271.467 tonnes on Jan 11.
But metals consultancy GFMS Ltd said on Thursday gold could
rally to record highs above $1,600 an ounce late this year or
early 2012 as safe-haven concerns fuel investment demand.
[ID:nN13286945]
The official sector, which includes central banks and
monetary authorities, swung into net purchases last year for
the first time since 1988, as increased buying in emerging
markets more than offset gold sales by European central banks,
GFMS said in its closely watched Gold Survey 2010 Update.
TOCOM prices in yen per gram. Spot prices in $ per ounce.
(Editing by)
Reuters Terminal users can see related news and prices by
double clicking on the codes in brackets:
- All precious metals headlines
- Precious metals market reports
- Daily fixing headlines
- Technical analysis
- Indian gold reports
- European gold prices <0#PREC>
- London interbank gold forward rates <0#GOFO=>
- London silver forwards
- Gold lease rates <0#LGLR=>
- London Bullion Market Association
- New York Comex gold <0#GC:> and silver <0#SI:>
- New York platinum <0#PL:> and palladium <0#PA:>
- Asian gold prices <0#PREC>
- Australian precious metals prices <0#AUPREC=>
- Shanghai Gold Exchange prices
- Hong Kong gold exchange prices
- Hong Kong bullion prices
- Indian bullion prices <0#PREC-IN>
- Japanese producer prices
For Related News and other topics, double click on one of these
codes:
SPEED GUIDES
