* Equities rise as risk appetite sharpens, capping gold
* Lingering euro zone debt worries underpin buying interest
* Chart support established just below $1,200/oz-analysts
(Updates, adds comment, changes dateline from SINGAPORE)
By Jan Harvey
LONDON, July 14 (Reuters) - Gold held near $1,210 an ounce
in Europe on Wednesday, consolidating after rising 1 percent in
the previous session on the back of resurgent fears over euro
zone debt levels, but a recovery in other assets capped gains.
Spot gold <XAU=> was bid at $1,211.65 an ounce at 0948 GMT,
against $1,210.65 late in New York on Tuesday. U.S. gold futures
for August delivery <GCQ0> ease $1.10 an ounce to $1,212.40.
The precious metal rose more than 1 percent on Tuesday after
a downgrade of Portugal's debt rating by Moody's brought concern
over euro zone sovereign debt back into the spotlight, but it is
struggling to build on those gains as risk appetite recovers.
"Appetite for other commodities and assets like equities is
better. Gold is going to suffer as we see a return to calmer
markets," said Credit Agricole analyst Robin Bhar. "Without the
Moody's downgrade of Portugal yesterday, we wouldn't be up at
these levels.
"You have got to be frightened to want to be long of gold,
and we don't have that factor," he added.
"But we still have uncertainties. There are still worries
about debt, about currency devaluation, about inflation becoming
higher. That is all supportive of this notion of there being a
fairly solid floor for gold."
Strong U.S. corporate earnings and easing concerns over euro
zone debt helped the euro to hold near a two-month high versus
the dollar on Wednesday, while European shares made hefty gains
in early trade, though they later steadied. [] []
Among other commodities, oil prices eased a touch but
remained near the two-week highs they hit late in the previous
session, while copper held firm. [] []
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SUPPORT ESTABLISHED
From a technical perspective, gold has established support
just below $1,200 an ounce. analysts who study charts of past
price moves to determine the future direction of trade are
cautiously optimistic its correction may be over.
"Intraday charts appear to be forming a small basing pattern,
and the recovery through the $1,215/18 area suggests that the
downtrend from the June peak has stabilized," said Barclays
Capital in a note.
"The risk is now for a choppy move higher towards $1,225/27.
However, in the least, a recovery above $1,235 is needed to
suggest that gold is primed to post new 2010 highs."
In India, the world's main consumer of gold, demand was
muted as international spot prices rose, with dealers reporting
buying interest had waned after rising on a price dip below
$1,200 an ounce. []
"I have plenty of orders in between $1,185-1,195 (an
ounce)," said a dealer with a private bank in Mumbai.
Among other precious metals, silver <XAG=> was flat at
$18.20. The gold-silver ratio -- how many ounces of silver are
needed to buy an ounce of gold -- hit a two-week low of 66.5 on
Tuesday as silver outperformed gold in a rising market.
"We require a close below 65.55 to bring in fresh selling of
the ratio," said ScotiaMocatta in a note.
Elsewhere platinum <XPT=> was at $1,519.65 an ounce against
$1,524.50, while palladium <XPD=> was at $463.50 against $463.
(Reporting by Jan Harvey; Editing by Alison Birrane)
