* Gold investment softens as other assets take centre stage
* Dollar rises 0.5 pct vs the euro after jobs data
* Largest silver ETF sees first inflow since Jan. 24
(Updates throughout, changes dateline, pvs SINGAPORE)
By Jan Harvey
LONDON, Feb 11 (Reuters) - Gold prices eased below $1,360 an
ounce in Europe on Friday, pressured by gains in the dollar and
lacklustre investment demand for the metal after a raft of
well-received economic data boosted interest in other assets.
Prices have been choppy this week within a fairly narrow
trading range as investors were caught between short-term
negative factors like improving risk appetite, and a view that
concerns over economic stability will ultimately benefit prices.
It is heading for its second consecutive weekly gain,
however, recovering some of January's 6 percent price fall.
Spot gold <XAU=> was bid at $1,358.60 an ounce at 1024 GMT,
against $1,362.90 late in New York on Thursday. U.S. gold
futures for April delivery <GCJ1> fell $3.20 to $1,359.30.
Richcomm Global Services analyst Pradeep Unni said better
appetite for assets such as equities was keeping gold between
$1,345-1,368 an ounce.
"The economy is far better placed for recovery and central
banks are at a stage where that they can talk of a rate hike,
which they couldn't think of a year ago," he said. Interest
rates in major economies have been held down for some time as
governments try to nurse economies back from recession.
"Consistent offloading by ETFs, who were pivotal in taking
the metal beyond $1,400, and lacklustre physical demand are the
key bearish forces curbing sustained gains. Gold is currently in
need of additional fundamental news triggers for the next move
ahead, as most current factors have been already priced in."
Some support was lent to prices by ongoing unrest in Egypt.
Concerns intensified on Thursday after news reports suggested
President Hosni Mubarak was on the brink of resigning.
Egyptian protesters enraged at his refusal to step down
streamed into Cairo's Tahrir Square on Friday in what organisers
billed as their biggest show of indignation. []
While more than two weeks of protests have failed to drive
gold much higher, they did lift the metal from lows on Thursday.
"(Gold) remains caught in a tug-of-war of downward pressure
from a stronger dollar as a result of an improved economy, and
an upward push on safe-haven buying as political instability in
Egypt continues," said Commerzbank in a note.
DOLLAR RISES
The dollar rose 0.6 percent against the euro <EUR=>,
benefiting from well-received jobs data released the previous
day and safe-haven flows linked to the Egypt protests. []
Dollar strength tends to weigh on gold as it curbs the
metal's appeal as an alternative asset and makes dollar-priced
commodities more expensive for holders of other currencies,
though the relationship has weakened in recent years.
Investment demand for gold remained soft, with holdings of
the world's largest gold-backed exchange-traded fund, New York's
SPDR Gold Trust <GLD>, easing by nearly a tonne on Thursday.
They are down just over 55 tonnes so far this year. []
In the same period of 2010, they fell around 27 tonnes.
Premiums for gold bars were steady in Hong Kong and
Singapore, with no signs of buying interest from China after the
Lunar New Year celebration. There was hardly any physical buying
in Asia related to unrest in Egypt, dealers said. <GOLD/ASIA1>
Meanwhile Australia's Newcrest Mining <NCM.AX>, the world's
third largest gold miner after its takeover of Lihir Gold last
year, said higher metal output had helped almost double
underlying first-half profit. []
Among other precious metals, silver <XAG=> was bid at $29.95
an ounce against $30.19.
Holdings in the world's largest silver ETF, the iShares
Silver Trust <SLV>, rose around 18 tonnes to 10,388.45 tonnes on
Thursday, their first increase since Jan. 24. []
Platinum <XPT=> was at $1,823.99 an ounce against $1,824.75,
while palladium <XPD=> was at $816.22 against $820.25.
(Reporting by Jan Harvey; editing by Keiron Henderson)
