* China CPI weaker than expected; tightening fears subdue
* Gold due for sharp move - technicals
* Coming up: Euro zone GDP flash estimate, Oct 2010; 1000
GMT
(Adds details, comments; updates prices)
SINGAPORE, Feb 15 (Reuters) - Spot gold inched higher on
Tuesday after China's weaker-than-expected inflation data eased
fears of more aggressive tightening moves, while persistent
concerns about rising prices are expected to buoy gold in the
longer term.
Trading in the physical market remained thin, as players
stayed on the sidelines waiting for a clear direction as prices
have been trapped in a narrow range in the past few sessions.
Chinese inflation was lower than expected at 4.9 percent in
the year to January, but price pressures continued to build and
will force the central bank to stick to its course of monetary
tightening. The number was in line with market talk in the past
few days of a weaker number.
"The number, in line with market expectations, may help
reduce fears of further tightening and underpin gold prices to a
certain extent," said Hou Xinqiang, an analyst at Jinrui Futures
in China.
Spot gold gained 0.2 percent at $1,364.75 an ounce by
0312 GMT. Prices have ranged between $1,348 and $1,368 in the
past five sessions. U.S. gold futures were little changed
at $1,365.5.
Spot gold is technically neutral, due for a sharp
move soon, as the current sideways mode will end either on
Tuesday or Wednesday, said Reuters market analyst Wang Tao.
For a weekly gold technical outlook:
http://graphics.thomsonreuters.com/WT/20111502082744.jpg
Holdings in the SPDR Gold Trust , the world's largest
gold-backed exchange-traded fund, remained unchanged at
1,225.526 tonnes.
Physical buying had yet to pick up after the Lunar New Year
holiday, dealers said.
"Over the long (Lunar New Year) holiday, inventories have
built up from the shipments that arrived," said a Hong
Kong-based dealer.
He added that gold premium in Hong Kong had narrowed to
below $2 an ounce over London prices, from over $3 before the
holiday when supply was tight and buying interest running high.
"People have no intention to buy now, but I think next week
activities will pick up."
Investors continued to watch the development in the
widespread unrest in Middle East nations. Political turmoil may
drive investors to seek safe-haven assets such as gold.
Strength in industrial metals spilled to platinum group
metals, which have extensive industrial applications.
Three-month copper on the London Metal Exchange rose
to a record high at $10,175.50.
Spot platinum gained more than half a percent at
$1,836 an ounce. Spot palladium edged up 0.2 percent at
$832.97.
Precious metals prices 0312 GMT
Metal Last Change Pct chg YTD pct chg Volume
Spot Gold 1364.75 3.08 +0.23 -3.85
Spot Silver 30.63 0.04 +0.13 -0.75
Spot Platinum 1836.00 10.51 +0.58 3.88
Spot Palladium 832.97 1.47 +0.18 4.19
TOCOM Gold 3667.00 20.00 +0.55 -1.66 29861
TOCOM Platinum 4975.00 48.00 +0.97 5.94 7279
TOCOM Silver 81.90 2.00 +2.50 1.11 1146
TOCOM Palladium 2240.00 45.00 +2.05 6.82 335
COMEX GOLD APR1 1365.40 0.30 +0.02 -3.94 3835
COMEX SILVER MAR1 30.64 0.10 +0.33 -0.99 1511
Euro/Dollar 1.3524
Dollar/Yen 83.26
TOCOM prices in yen per gram. Spot prices in $ per ounce.
COMEX gold and silver contracts show the most active months
(Reporting by Rujun Shen; Editing by Manash Goswami)
Reuters
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