* Dollar up 0.3 percent vs currency basket <.DXY>
* US housing data boosts dollar; Greek downgrade dents euro
* SPDR Gold holdings rises closer to record high
(Updates prices, adds analyst's comment)
By Humeyra Pamuk and Rebekah Curtis
LONDON, Dec 22 (Reuters) - Gold slid to its lowest since
early November at $1,074.10 per ounce on Tuesday, as the dollar
gained ground against the euro and a basket of currencies -- a
trend analysts see pressuring bullion into the new year.
With the dollar's rally gathering steam, dealers said gold
could make further forays lower toward key support at $1,060,
some way off historic peaks hit just a few weeks earlier at
$1,226.10, as investors retreat after a storming rally.
Appetite to buy bullion on dips was seen keeping prices
sustained at the lower levels, with some expecting the market's
bull run to extend in 2010.
Spot gold <XAU=> stood at $1,082.70 an ounce by 1718 GMT,
versus $1,092.85 an ounce quoted late in New York on Monday.
"It's not over yet," Commerzbank analyst Eugen Weinberg said
of gold's weakness. "Before optimism was so strong. The market
the positioning in the market was way too positive," he said,
adding that prices could fall to as low as $1,000 in the near
term.
"Gold's strength or weakness will be dependent less on
fundamentals and more on the fate of the U.S. dollar."
The dollar index <.DXY> reversed early losses to gain almost
0.3 percent against a basket of major currencies, boosted by
data showing U.S. existing home sales surged last month as
prices continued to fall.
The report offset a sharper-than-expected downward revision
to U.S. third quarter growth and boosted optimism about a
recovery in the world's largest economy. See []
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A firmer dollar makes dollar-priced commodities including
gold costlier for holders of other currencies.
U.S. gold futures for February delivery <GCG0> fell 1.17
percent to $1,083.10 per ounce, compared to a close of $1,096.00
on Monday on the COMEX division of the New York Mercantile
Exchange. Futures fell $15.50 on Monday from the previous day.
ETF HOLDINGS RISE
Dealers reported solid buying on dips in anticipation of
renewed price appreciation in 2010, underscoring extended gains
in the holdings of the world's largest gold-backed
exchange-traded fund, SPDR Gold Trust <GLD>.
SPDR Gold Trust <GLD> said its holdings rose 6.097 tonnes or
0.5 percent to 1,132.708 tonnes on Monday. They hit a record
high of 1,134.03 tonnes on June 1. []
And as a sign of robust physical demand, premiums for gold
bars jumped to their highest in months after a drop in bullion
prices spurred buying from investors and jewellers across Asia,
dealers said. []
India's spot gold prices rose on Monday as buying gained
momentum in the market after a correction in prices in the
previous week, dealers said. []
Despite recent price dips, in the longer term many analysts
believe bullion's potential to rise remains intact.
"The investment sentiment towards gold is very positive,"
said analyst Suki Cooper at Barclays Capital, adding the worries
about inflation and the health of the economy could help support
gold prices.
Among other precious metals, silver <XAG=> was at $16.94 an
ounce against $17.01 and platinum <XPT=> was at $1,391.50 versus
$1,414.50. Palladium <XPD=> was bid at $355.50 against $360.50.
(Additional reporting by Chikako Mogi in Tokyo, Editing by
Veronica Brown)
