* Gold bounces on bargain hunting but near 1-month low
* Oil extends losses, euro slips ahead of ECB meeting
* Physical buying keep gold premiums steady
(Updates prices)
SINGAPORE, Jan 13 (Reuters) - Gold rebounded on Tuesday on
bargain hunting after touching its lowest in a month the
previous day, with dealers also noting buying interest from
jewellers in Asia ahead of the Lunar New Year holidays later
this month.
But a a weaker euro against the U.S. dollar and oil
extending losses on demand worries kept pressure on prices,
holding premiums for gold bars steady at 10 to 20 U.S. cents in
Hong Kong. <GOLD/ASIA1>.
Gold <XAU=> was trading at $825.70 an ounce, up $6.35 an
ounce from New York's notional close on Monday, when it tumbled
to a one-month low at $814.65 an ounce. Gold was around 7
percent below an 11-week high of $889.55 hit in late December.
"We've seen some physical buying because the price is below
$850 and I guess the market may even try the lower levels
again," said a dealer in Hong Kong.
"I would say the buyers are mostly investors because of
uncertainty in the financial sector. There's of course buying
interest from jewellers ahead of the Chinese New Year, although
I think activity may slow down next week," he said.
The euro <EUR=> slipped against the dollar on Tuesday,
under pressure near a one-month low hit the previous day on
growing expectations the European Central Bank will cut
interest rates this week. []
Markets expect the ECB to cut key interest rates by 50
basis points to 2 percent on Thursday, a Reuters poll showed.
Crude oil <CLc1> fell to around $37 a barrel, having fallen
nearly 8 percent in the previous session, which in theory
reduces gold's appeal as a hedge against inflation. []
But gold has bounced more than 20 percent since falling to
a 13-month low around $680 in late October. It hit an all time
high of $1,030.80 an ounce last March.
"Everyone's bullish on gold in the long-term, but I noticed
we got a lot of sellers around the $880-$900 regions," said
Adrian Koh of Phillip Futures in Singapore, referring to the
recent highs.
"In short, it means there are still a number of sellers at
certain levels. Until we see that picture change, I am still
sideward on gold."
Platinum <XPT=> was trading at $944.00 an ounce, down $12
from New York notional close.
Falling car sales in China added to the gloomy outlook for
the auto industry, the largest user of platinum. Car sales
dropped 8 percent in December from the previous year, the
country's official industry association said. []
New York gold futures <GCZ9> added $5.8 an ounce to $826.8
in electronic trade.
Precious metals prices at 0303 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 825.70 6.35 +0.78 -0.84
Spot Silver 10.65 0.03 +0.28 -27.89
Spot Platinum 944.00 -12.00 -1.26 -37.89
Spot Palladium 183.00 -1.00 -0.54 -50.27
TOCOM Gold 2390.00 -129.00 -5.12 -21.90
24940
TOCOM Platinum 2723.00 -211.00 -7.19 -49.00
6050
TOCOM Silver 305.90 -20.60 -6.31 -43.46
267
TOCOM Palladium 532.00 -42.00 -7.32 -60.62
358
Euro/Dollar 1.3325
Dollar/Yen 89.40
TOCOM prices in yen per gram, except TOCOM silver which is
priced in yen per 10 grams. Spot prices in $ per ounce.
(Reporting by Lewa Pardomuan; Editing by Michael Urquhart)
