* Stronger buying expected in new year
* Eyes on key U.S. consumer confidence later on Tuesday
(Adds details, comment, changes dateline from TOKYO)
By Jonathan Saul
LONDON, Dec 29 (Reuters) - Gold was little changed on
Tuesday around $1,105 an ounce due to low investor liquidity but
dollar weakness and expectations of stronger buying in the new
year were set to support bullion prices.
Spot gold <XAU=> was at $1,105.60 an ounce by 1209 GMT,
versus $1,105.60 an ounce late in New York on Monday. Bullion
tumbled to a seven-week low of $1,074.10 an ounce last week
before the holiday break.
"It is more likely that gold could go higher because the
euro is recovering," Deutsche Bank trader Michael Blumenroth
said. "People would rather be happy to see gold moving higher at
the end of year rather than lower."
The dollar fell against the euro on Tuesday as equities
gained ground due to improved investor appetite for risk.
[]
Weakness in the U.S. dollar boosts gold's appeal as an
alternative asset and makes dollar-priced commodities cheaper
for holders of other currencies.
"It feels like $1,100 is well supported for the time being
on the upside. I would say $1,110 seems to be a good
resistance," Afshin Nabavi, head of trading with MKS Finance,
said.
Traders and analysts said they were awaiting key U.S.
consumer confidence data due to be released at 1500 GMT on
Tuesday.
U.S. gold futures for February delivery <GCG0> were down
0.32 percent at $1,104.30 from $1,107.90 an ounce on the COMEX
division of the New York Mercantile Exchange on Monday. Futures
rose to a record high of $1,227.50 on Dec. 3.
Nabavi said good physical demand for gold was also helping.
"That is one of the reasons why gold is being supported
every time it goes lower," he said. "So if it continues in this
manner, I think probably beginning of next year we should have a
move on the upside."
The world's largest gold-backed exchange-traded fund, SPDR
Gold Trust <GLD>, said its holdings stood at 1,132.708 tonnes as
of Dec. 28, unchanged since Dec. 21. Holdings hit a record high
of 1,134.03 tonnes on June 1. []
"Profit taking is giving way to new optimism and with the
dollar weakening that's helping gold higher off a solid
platform," John Meyer, analyst with U.K. based investment bank
Fairfax, said.
Among other precious metals, spot silver <XAG=> was bid at
$17.40 an ounce against $17.50.
The U.S. Securities and Exchange Commission took a
regulatory step on Dec. 22 that brought shares of ETF Securities
Platinum and Palladium trusts closer to final approval for trade
on the New York Stock Exchange. []
The move has helped buoy platinum and palladium prices.
Earlier on Tuesday palladium rose to its highest level since
Dec. 3.
Platinum <XPT=> was at $1,467.50 ounce against $1,479.00,
while palladium <XPD=> was at $385.00 against $387.50.
(Additional reporting by Chikako Mogi in Tokyo; editing by Sue
Thomas)
