* Gold to fall further to $1,352.30/z-technials
[]
* Coming Up: U.S. CPI mm, SA Dec; 1330 GMT
(Updates prices, adds quotes)
SINGAPORE, Jan 14 (Reuters) - Bullion rebounded on Friday
as the euro lost strength despite better-than-forecast debt
auctions by Spain and Italy, while purchases from jewellers
and investors, which sent premiums for gold bars to 2-year
highs, offered additional support.
Silver also bounced after falling more than 3
percent in the previous session, while platinum and
palladium held near their multi-year highs on the
prospect of more demand from investors and the industrial
sector.
Spot gold rose $3.41 to $1,376.16 an ounce by
0312 GMT after trading in a choppy $23 range on Thursday.
Bullion struck a lifetime high around $1,430 an ounce in
December on fears the euro debt crisis would spread.
"We've seen strong physical buying in Asia. It's still
going on," said Dick Poon, manager of precious metals at
Heraeus in Hong Kong. "I think gold is consolidating right
now. I am still bullish on gold and silver."
U.S. gold futures for February fell $12.2 to
$1,374.8 an ounce to track weaker oil prices, but the decline
was ignored by players in the cash market.
Gold bars were offered at premiums of $3 an ounce to spot
London prices in Hong Kong, and at $1.5 in Singapore.
Wang Tao, a Reuters market analyst for commodities and
energy technicals, said gold is expected to fall to $1,352.30
per ounce, as the rebound from this level could have
completed, and a bullish target at $1,407 is aborted.
For a 24-hour gold technical outlook:
http://graphics.thomsonreuters.com/WT/20111401091322.jpg
The euro took a breather on Friday, but was still on track
to post its best weekly performance against the dollar in 20
months, while equity markets were lacklustre with Japan's
Nikkei retreating from an 8-month peak.
European Central Bank President Jean-Claude Trichet
renewed a call for euro zone governments to boost the size and
scope of their 440 billion euro ($578.2 billion) rescue fund
and warned of short-term inflation pressures in the euro area.
Oil eased on Friday, pressured by disappointing U.S.
economic data and the prospect OPEC would raise output should
prices break above $100 a barrel for an extended period.
Physical dealers noted purchases from jewellers in China
ahead of the Lunar New Year in February, where most Chinese
return home for the holidays and demand for jewellery
increases. Despite the demand from China and also top consumer
India, gold was struggling to revisit the $1,400 level.
"I think some sort of liquidation on the ETF has a bit of
impact on gold. But bargain hunting supports the prices
despite some disappointment that prices can't break through
$1,400," said a dealer in Hong Kong.
The world's largest gold-backed exchange-traded fund,
SPDR Gold Trust , said its holdings fell to 1,265.093
tonnes by Jan 13 from 1,271.467 tonnes on Jan 11.
But metals consultancy GFMS Ltd said on Thursday gold could
rally to record highs above $1,600 an ounce late this year or
early 2012 as safe-haven concerns fuel investment demand.
[]
The official sector, which includes central banks and
monetary authorities, swung into net purchases last year for
the first time since 1988, as increased buying in emerging
markets more than offset gold sales by European central banks,
GFMS said in its closely watched Gold Survey 2010 Update.
Precious metals prices at 0312 GMT
Metal Last Change Pct chg YTD pct chg Turnover
Spot Gold 1376.16 3.41 +0.25 25.60
Spot Silver 28.86 0.19 +0.66 71.48
Spot Platinum 1811.75 11.76 +0.65 23.50
Spot Palladium 803.72 -0.03 -0.00 98.20
TOCOM Gold 3673.00 -42.00 -1.13 12.70 37785
TOCOM Platinum 4872.00 24.00 +0.50 11.21 12796
TOCOM Silver 77.10 -2.40 -3.02 49.13 1392
TOCOM Palladium 2152.00 -26.00 -1.19 84.72 711
Euro/Dollar 1.3333
Dollar/Yen 82.65
TOCOM prices in yen per gram. Spot prices in $ per ounce.
(Reporting by Lewa Pardomuan; Editing by Manash Goswami)
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