* Asian buyers target gold after price slip
* Euro off 2-mth high after Irish govt party withdrawal
* Silver ETF sees biggest 1-day outflow since late Nov.
(Updates throughout, changes dateline, pvs SINGAPORE)
By Jan Harvey
LONDON, Jan 24 (Reuters) - Gold edged up towards $1,350 an
ounce in Europe on Monday as lower prices attracted buyers after
the metal's third consecutive weekly loss, but a more optimistic
view of global growth limited fresh investment.
A dearth of safe-haven demand means the precious metal could
struggle to make fresh headway after rising to a record high
above $1,430 an ounce late last year, analysts said.
Spot gold <XAU=> was bid at $1,347.90 an ounce at 1048 GMT,
against $1,342.25 late in New York on Friday. U.S. gold futures
for February delivery <GCG1> rose $6.20 an ounce to $1,347.00.
The precious metal fell 1.4 percent last week to its lowest
since late November as a spate of firmer-than-expected economic
data, primarily from the United States, boosted interest in
assets seen as higher risk at gold's expense.
"We have got a pretty robust macro backdrop despite some
potential for European sovereign issues," said RBS analyst
Daniel Major. "Our economists aren't in the camp that that is
going to derail global growth and the global risk story."
"The safe-haven argument, which was the dominant theme last
year, is unlikely to be repeated this year," he said. "We have
already seen slowing interest in exchange-traded funds."
"In the near term there seems to be good physical buying in
China and India on price weakness and that is providing a bit of
support around the $1,350 level, but certainly the Western
investment story has started to wane somewhat."
Prices took a boost from fresh investment in gold-backed
ETFs after several weeks of outflows, with holdings of the
largest, the SPDR Gold Trust <GLD>, rising by more than 20
tonnes on Friday. []
They are still down some 9 tonnes this year, however.
Bargain hunting helped gold shrug off gains in the dollar,
which usually weigh on prices. Strength in the U.S. unit curbs
gold's appeal as an alternative asset and makes dollar-priced
commodities more expensive for holders of other currencies.
EURO RETREATS
The euro backed off a two-month high against the dollar,
with political turmoil in Ireland highlighting uncertainties
facing heavily indebted euro zone countries. []
Ireland's junior coalition party withdrew from Prime
Minister Brian Cowen's government on Sunday, signalling the end
of a crisis-riddled administration and hastening an election due
on March 11. [] []
Meanwhile data released Friday by the Commodity Futures
Trading Commission showed a third successive drop in the net
speculative position in gold, bringing the net non-commercial
long to its lowest since the week of July 26, 2009.
The data showed the silver speculative position rose last
week by about 1.3 percent, partially offsetting the previous
week's fall, while the platinum net non-commercial position
staged its largest weekly rise in at least four years.
Platinum <XPT=> was at $1,818.99 an ounce against $1,824.00,
while palladium <XPD=> was at $816 against $819.75. Silver
<XAG=> was bid at $27.55 an ounce against $27.47.
Holdings of the world's largest silver ETF, the iShares
Silver Trust <SLV>, fell by 181 tonnes on Friday, their biggest
one-day outflow since late November.
They are down by more than 527 tonnes since the beginning of
the year, worth some $468 million at today's prices.
HSBC analyst James Steel said in a note that despite strong
sales of silver coins by the U.S. Mint, prices were unlikely to
ride out falling ETF holdings. "Strong coin demand is unlikely
to make up for weaker ETF demand," he said.
(Additional reporting by Amanda Cooper; Editing by Jason
Neely)
