* China GDP, inflation data due Jan 20
* Gold may retreat to $1,349 -technicals
(Adds comments, details; updates prices)
By Rujun Shen
SINGAPORE, Jan 17 (Reuters) - Gold rebounded slightly on
Monday from a fall of one percent in the previous session,
shrugging off China's tightening move on Friday, as physical
buying continued to buoy prices.
China's central bank raised lenders' required reserves on
Friday for the fourth time in just over two months, stepping up
the fight against inflation that it has vowed will be a top
priority for the year.
Eyes are on a suite of data from Beijing due on Thursday,
including December inflation and fourth-quarter economic growth,
which might give clues on how much tightening would be needed in
the next few months.
But economic conditions in the U.S. and Europe will be a
more decisive factor behind gold prices, some analysts said.
"We may see gold prices pressured by the upcoming China
data, but just for a session or two. The more important factor
is still the United States," said Hou Xinqiang, an analyst at
Jinrui Futures.
The U.S. economy still needs support from the Federal
Reserve even as recent data point to firmer growth prospects,
top officials at the Federal Reserve said.
Spot gold gained 0.3 percent to $1,365.29 an ounce by
0311 GMT, after touching a one-week low of $1,354.99 on Friday.
U.S. gold futures lost 1.6 percent to $1,365.1 an
ounce.
"In the short term, gold is most likely rangebound, with the
recent lows around $1,354 being a strong support level. Medium-
to long-term, prices are still looking up," said Jinrui's Hou,
adding that a breach below the support level might bring a
directional change to the market.
Spot gold will extend its loss to $1,349 per ounce,
as a downward wave "C" or wave (3) is advancing, said Wang Tao,
a Reuters market analyst.
For a 24-hour gold technical outlook:
http://graphics.thomsonreuters.com/WT/20111701093124.jpg
The dollar held steady, as the euro hovered below a
one-month high on Monday, with market players saying clearer
signs of progress on the euro zone's safety net for sovereign
debt were necessary for the currency to make significant gains.
Physical demand stayed robust, and bargain hunting was seen
in the Asian market after prices dropped and spot supply
remained tight, dealers said.
"Supply is quite tight, especially in Hong Kong, because
there hasn't been much scrap sold back to the market, as people
are still bullish on prices," said a Hong Kong-based dealer.
Gitanjali Gems Ltd , India's biggest jewellery
retailer, expects to boost sales to about $2 billion this year
from $1.55 billion in 2010 and aims to expand in Italy and
China, its top executive said.
Spot silver rose by 0.4 percent to $28.53 an ounce,
after falling to a one-month low of $28.09 in the previous
session.
It rose to a historical high just below $50 on Jan 18, 1980,
according to LBMA data.
Precious metals prices 0311 GMT
Metal Last Change Pct chg YTD pct chg Turnover
Spot Gold 1365.29 4.44 +0.33 -3.82
Spot Silver 28.53 0.11 +0.39 -7.55
Spot Platinum 1814.00 5.00 +0.28 2.63
Spot Palladium 796.22 4.72 +0.60 -0.41
TOCOM Gold 3654.00 -16.00 -0.44 -2.01 43592
TOCOM Platinum 4890.00 -2.00 -0.04 4.13 8861
TOCOM Silver 76.50 -0.50 -0.65 -5.56 1433
TOCOM Palladium 2135.00 -26.00 -1.20 1.81 481
Euro/Dollar 1.3340
Dollar/Yen 82.89
TOCOM prices in yen per gram. Spot prices in $ per ounce.
(Editing by Clarence Fernandez)
Reuters
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