* Physical buying seen to pick up after holidays
* Spot gold bearish target at $1,370 - technicals
[]
* Coming up: U.S. ICSC chain stores weekly; 1245 GMT
(Adds details, comments; updates prices)
By Rujun Shen
SINGAPORE, Jan 4 (Reuters) - Spot gold held steady on
Tuesday supported by physical demand and a stronger dollar
linked to U.S. manufacturing data that showed the economy
might be on a steady recovery.
The dollar index edged higher, with the yen on the
backfoot after upbeat data suggested the world's largest
economy will accelerate in 2011 following recent run of
encouraging data. []
"The dollar is a little bit stronger this morning. If it
has any negative impact on gold, it's only short-term. The
market is still on positive side," said Dick Poon, manager of
precious metals at Hareaus in Hong Kong.
"There are still worries about the economy in the euro
zone. For the long term, people would want to put money in
commodities, metals."
Another key concern hanging over the market is the
prospect of further near-term interest rate hikes in nations
such as China and India, and even the United States later this
year, that could dampen enthusiasm for gold by investors, Poon
added.
Spot gold was little changed at $1,415.30 an ounce
by 0321 GMT. U.S. gold futures lost half a percent to
$1,416.3 an ounce.
Physical buying are expected to return in coming days,
after the holiday break, which is seen supportive of gold
prices, traders said.
"The market is very quiet. I'm slightly concerned about
bond yields. If bond yields go up, it's probably not good for
gold," said a Singapore-based trader.
Benchmark U.S. 10-year Treasury notes were
down 5/32 in price to yield 3.35 percent, up about 2 basis
points from late U.S. trade on Monday, as the market stayed on
the back foot ahead of a string of data releases this week
that could reinforce a pickup in optimism towards the economy.
Eyes are on U.S. non-farm payrolls data due Friday,
expected to show an improvement labour market. []
Technical analysis showed that a bearish target at $1,370
per ounce is unchanged for spot gold as a five-wave
cycle that started around $1,314, completed at the previous
session high of $1,423.57, according to Reuters market analyst
Wang Tao. []
For a 24-hour gold technical outlook:
http://graphics.thomsonreuters.com/WT/20110401094311.jpg
On the base metals market, three-month copper on the
London Metal Exchange reached a new high at $9,725 a tonne. It
broke records in five of the past seven sessions, boosted by
better economic outlook and expectations on tighter supply in
2011.
Precious metals prices 0321 GMT
Metal Last Change Pct chg YTD pct chg Turnover
Spot Gold 1415.30 1.30 +0.09 -0.29
Spot Silver 30.72 0.06 +0.20 -0.45
Spot Platinum 1761.99 -4.01 -0.23 -0.31
Spot Palladium 788.72 -1.25 -0.16 -1.35
TOCOM Gold 3741.00 26.00 +0.70 0.32 16127
TOCOM Platinum 4710.00 22.00 +0.47 0.30 6788
TOCOM Silver 81.30 0.30 +0.37 0.37 683
TOCOM Palladium 2100.00 3.00 +0.14 0.14 428
Euro/Dollar 1.3348
Dollar/Yen 81.91
TOCOM prices in yen per gram. Spot prices in $ per ounce.
(Editing by Ed Lane)
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