* Gold off lows, physicals buy on dips
* Technicals point downward to $1,329.45[]
* Coming Up: EZ economic sentiment Nov; 1000 GMT
(Updates prices, adds quotes)
By Lewa Pardomuan
SINGAPORE, Nov 29 (Reuters) - Gold rebounded on Monday
after an early drop spurred buying from jewellers in Asia, but
further gains could be limited by a rally in the U.S. dollar
amid persistent euro zone debt concerns.
Investors also closely watched an escalating tension in
the Korean peninsula, although dealers said there were no
signs of buying related to the crisis sparked by North Korea's
artillery attack on a southern South Korean island.
[]
Spot gold added $1.46 to $1,363.19 an ounce by 0327
GMT, having hit an intraday low at around $1,353 -- not far
from a low around $1,350 seen last week. Bullion was below a
lifetime high around $1,424 struck in early November.
According to a Reuters market analyst, Wang Tao, spot gold
may extend its fall towards $1,329.45 per ounce as a big
downward wave "C" is progressing.
For a 24-hour technical outlook on gold, see:
http://graphics.thomsonreuters.com/WT/20102911100027.jpg
"For today, I would look at support for gold at about
$1,350. However, I think if we see a breach of this level,
then we could see gold retreating further," said Ong Yi Ling,
investment analyst at Phillip Futures in Singapore.
"For the week ahead, I will also expect gold prices to
pass some of its gains that was accumulated earlier. Currently
the gold and the dollar is having a pretty strong inverse
relationship."
U.S. gold futures rose $1.1 an ounce to $1,363.5 an
ounce.
The euro slipped to its lowest in two months against the
dollar as the market looked past a rescue package for Ireland
to other euro zone economies and a euro zone crisis resolution
mechanism.
EU finance ministers endorsed an 85 billion-euro ($115
billion) loan package to help Dublin cover bad bank debts and
bridge a huge budget deficit, and approved outlines of a
permanent crisis-resolution system which could make private
bond holders share the burden of restructuring sovereign debt
bought after 2013. []
"The dollar is so strong, but we see buying on the
physical side when trading started in Asia. That helps the
market a bit. Some Chinese guys may be buying a bit," said
dealer in Hong Kong.
"I would think $1,350 is a good support for gold, but I
don't think we will go down too much even if we break that
level."
Silver also bounced on firmer gold, platinum
was flat, while palladium barely moved.
The world's largest silver-backed exchange-traded fund,
iShares Silver Trust , said its holdings slipped to
10,711.23 tonnes by Nov. 26 from an all-time high of
10,893.68 tonnes by Nov 23. []
In other markets, the Nikkei edged higher as the yen
softened against the dollar, oil rose past $84 and the dollar
gained on fears of a financial market contagion engulfing
other euro zone economies.
Precious metals prices at 0327 GMT
Metal Last Change Pct chg YTD pct chg Turnover
Spot Gold 1363.19 1.46 +0.11 24.41
Spot Silver 26.85 0.19 +0.71 59.54
Spot Platinum 1645.50 0.50 +0.03 12.17
Spot Palladium 674.25 0.25 +0.04 66.28
TOCOM Gold 3696.00 -4.00 -0.11 13.41 40999
TOCOM Platinum 4494.00 25.00 +0.56 2.58 7288
TOCOM Silver 72.90 -0.90 -1.22 41.01 1427
TOCOM Palladium 1832.00 -22.00 -1.19 57.25 558
Euro/Dollar 1.3222
Dollar/Yen 84.06
TOCOM prices in yen per gram. Spot prices in $ per ounce.
(Editing by Himani Sarkar)
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