* Palladium hits nine-year high of $787.25/oz
* Spot silver, U.S. silver at 3-week highs
* Coming up: U.S. weekly mortgage index; 1200 GMT
(Adds details; updates prices)
By Rujun Shen
SINGAPORE, Dec 29 (Reuters) - Gold prices hovered near
their two-week high above $1,400 on Wednesday as lackluster
economic data from the United States burnished the metal's
safe-haven appeal, while bullish forecast for next year helped
keep the market sentiment buoyant.
Latest U.S. data, showing consumer confidence unexpectedly
deteriorated in December and prices of single-family homes
fell almost double the expected pace in October, was at odds
with other signs suggesting recovery was accelerating in the
world's largest economy. []
"The U.S. economy outlook and monetary policy is a key
factor that influences gold prices. We've seen data alternate
between good and bad, showing that the economy is recovering,
but without a strong momentum yet," said Hou Xinqiang, an
analyst at Jinrui Futures based in China.
Hou expected gold prices to be rangebound with a strong
support level at $1,360 in the short term, before they rally
in the coming year.
Spot gold was flat at $1,405.51 an ounce by 0638
GMT, after hitting a two-week high of $1,406.75 in the
previous session. U.S. gold futures edged up nearly $1
to $1,406.6 an ounce.
Trading on the physical market was thin, as most market
players were away on holidays, dealers said.
"Yesterday we saw some selling around $1,385, and today
the market is quieter than the past two days," said a
Singapore-based dealer.
"Jewellers are not buying at such price levels. It's
investors and hedge funds that would buy, betting on further
price rally," said a Singapore-based dealer, adding that among
other factors, the uncertainty around the euro zone's
sovereign debt crisis, would continue to support gold.
U.S. Treasury yields inched up in Asia on short covering
after a jump on Tuesday, on growing safe-haven appetite that
tends to benefit the bullion as well.
The dollar index was steady, after bouncing from a
1-1/2 week low on Tuesday.
STRONG SILVER
Spot silver hit a three-week high of $30.39 an
ounce, and was trading at $30.28, as enthusiasm about gold as
a safe-haven asset spilled over to silver, known as the "poor
man's gold".
U.S. silver futures also hit a three-week
high of $30.42 an ounce.
The gold-silver ratio, used to measure how many ounces of
silver is needed to buy one ounce of gold, dropped to a
four-year low of 46.6, compared with a 10-year average of 62.2.
For a graphic on gold-silver ratio, click:
http://graphics.thomsonreuters.com/AS/0810/RJS_20102912145011.jp
g
Spot palladium reached $787.25 an ounce, its
highest since March 2001, and eased to $783.53.
Spot platinum was trading at $1,749.74, down about
0.2 percent.
Analysts have had high hopes on the platinum group metals,
citing robust growth in China's auto industry which is
expected to boost consumption of the PGM, especially
palladium, used to produce
autocatalyst.[][]
China has said it will end tax incentives for small cars
on Jan. 1, a long-anticipated move that would apply the brakes
to the runaway expansion of the world's largest auto market,
but shares of automakers were unfazed by the announcement,
suggesting continuous robust growth prospects for the
industry. [][]
Precious metals prices at 0638 GMT
Metal Last Change Pct chg YTD pct chg Turnover
Spot Gold 1405.51 0.01 +0.00 28.28
Spot Silver 30.28 0.02 +0.07 79.92
Spot Platinum 1749.74 -3.50 -0.20 19.27
Spot Palladium 783.53 -1.69 -0.22 93.23
TOCOM Gold 3730.00 31.00 +0.84 14.45 36162
TOCOM Platinum 4694.00 7.00 +0.15 7.14 13719
TOCOM Silver 80.50 2.10 +2.68 55.71 2641
TOCOM Palladium 2096.00 32.00 +1.55 79.91 1415
Euro/Dollar 1.3125
Dollar/Yen 82.24
TOCOM prices in yen per gram. Spot prices in $ per ounce.
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