* Gold's retreat seen temporary
* Gold may fall to $1,360 - technicals []
* Coming up: U.S. ISM N-Mfg PMI, Dec; 1500 GMT
(Updates prices; adds comment)
By Rujun Shen
SINGAPORE, Jan 5 (Reuters) - Spot gold steadied on
Wednesday from a more than two percent fall in the previous
session, as bargain hunting on the physical market lent
support and helped offset a stronger dollar.
Spot gold gained 0.3 percent to $1,383.16
an ounce by 0651 GMT, after posting its biggest daily loss
since Nov 12. on Tuesday. U.S. gold rose by 0.3 percent
to $1,383.1.
Physical demand has taken advantage of the price dip,
dealers said.
"Physical buying is coming in. A lot of jewellers are very
happy. We are getting a lot of buying from them in India and
Thailand," said a Singapore-based dealer.
A new bearish target at $1,360 per ounce has been
established for spot gold as the deep fall in the
previous session only completed part of a big downtrend,
according to Wang Tao, a Reuters market analyst. []
For a 24-hour gold technical outlook:
http://graphics.thomsonreuters.com/WT/20110501084423.jpg
"It's still a healthy correction," said a Hong Kong-based
dealer. "Gold will probably test $1,375, then $1,350, in the
coming two days, until Friday's non-farm payrolls data give a
good hint on dollar's next move."
The dollar held firm on Wednesday, bolstered by further
evidence that the U.S. economic recovery is becoming
self-sustaining, while a correction in high-flying commodity
prices pressured the Australian dollar.
Holdings in the world's largest gold-backed
exchange-traded fund, SPDR Gold Trust , fell to a
seven-month low at 1,276.472 tonnes by Jan 4.
An improved economic outlook following a bout of positive
data from the United States and elsewhere in recent weeks
helped trim safe-haven demand, which usually boosts gold
prices.
The CBOE Volatility Index, or VIX , fell slightly to
17.38 on Tuesday, showing that risk appetite was not deterred
by the broad sell-off in commodities.
The price dip, however, did not change the bullish outlook
for the bullion on the longer term, analysts said.
"It's a temporary setback," said Yingxi Yu, an analyst at
Barclays Capital.
"We do see some physical buying come in to support. At
this stage, I don't think we are into something more
significant and sustained, and we still remain relatively
positive on gold for this year."
Federal Reserve officials in December felt the U.S.
economic recovery was still weak enough to warrant monetary
support despite growing signs of strength, Fed meeting minutes
released on Tuesday showed. []
The weak stock markets and base metals performance
dampened the sentiment on the platinum group metals.
Spot platinum fell to a 1-1/2 week low of $1,723.5,
and recovered to $1,733.45.
Spot palladium fell 0.7 percent to $769.9.
Three-month copper on the London Metal Exchange
slipped from a record high on Tuesday.
Precious metals prices 0651 GMT
Metal Last Change Pct chg YTD pct chg Turnover
Spot Gold 1383.16 3.43 +0.25 -2.56
Spot Silver 29.60 -0.17 -0.57 -4.08
Spot Platinum 1733.45 -19.79 -1.13 -1.93
Spot Palladium 769.90 -5.07 -0.65 -3.70
TOCOM Gold 3665.00 -87.00 -2.32 -1.72 95335
TOCOM Platinum 4648.00 -84.00 -1.78 -1.02 21305
TOCOM Silver 78.40 -3.20 -3.92 -3.21 2768
TOCOM Palladium 2058.00 -44.00 -2.09 -1.86 589
Euro/Dollar 1.3281
Dollar/Yen 82.03
TOCOM prices in yen per gram. Spot prices in $ per ounce.
(Editing by Himani Sarkar)
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