* Euro falls below $1.35 as dollar benefits from U.S. data
* Strong technical support seen for gold at $1,144/oz
* Silver ETF records outflow; holdings down 3.4 pct in April
(Updates prices, adds comment)
By Jan Harvey
LONDON, April 16 (Reuters) - Gold fell 1 percent on Friday
to a low of $1,146.35 an ounce as the dollar hit a session high
versus the euro, with well-received U.S. housing starts data
pushing the single currency below the key $1.35 level.
Spot gold <XAU=> was bid at $1,149.90 an ounce at 1343 GMT,
against $1,157.95 late in New York on Thursday. U.S. gold
futures for June delivery <GCM0> on the COMEX division of the
New York Mercantile Exchange fell $10.50 to $1,149.80 an ounce.
Prices were rangebound in earlier trade, caught between
opposing pressures as fears over the outlook for debt-laden
Greece prompted some interest in gold as a haven from volatility
in other markets, but pressured the euro.
Support above $1,150 an ounce was unable to withstand the
dollar's rise versus the euro, however.
"At this point, gold is back trading as usual against the
dollar," said Andrey Kryuchenkov, an analyst at VTB Capital. "It
looks overbought, and physical buyers are not going to come back
in at these levels."
"There is very good support at $1,144, but I expect it to
come off to the mid-$1,130s. We need a bit of a correction."
Strength in the dollar curbs gold's appeal as an alternative
asset and makes dollar-priced commodities more expensive for
other currency holders.
The euro slid to a one-week low below the key $1.35 level on
Friday, driven by technical momentum after stronger than
expected U.S. housing starts data lifted the dollar. []
Housing starts rose more than expected in March to their
highest level since November 2008 and permits to build new homes
scaled a 17-month peak, offering hope the housing market
recovery remained on course. []
OIL RETREATS
Oil prices, often another key driver of the gold market,
fell more than $1 a barrel on Friday to below $85, pressured by
dollar strength and concerns over U.S. demand. []
U.S. investment demand for gold has been firm in recent
weeks, with holdings of the world's largest gold-backed
exchange-traded fund, New York's SPDR Gold Trust <GLD>, steady
at record levels on Thursday. []
From a chart perspective, gold prices are looking relatively
firm, though a further pullback is on the cards after the metal
hit four-month highs earlier this month, analysts said.
"While unwinding its recent overbought momentum readings on
daily charts, bullish sentiment for gold is increasing," said
Barclays Capital in a note.
"However, (it) has yet to close above its January
peak/resistance at $1,162/66, and such a close would confirm a
resumption of the uptrend to $1,187. In the near term, we are
neutral within the $1,143-1,162 range and expect further gains
to $1,188 later this month."
For Reuters' technical analysis, click on []
Among other precious metals, silver <XAG=> was at $18.17 an
ounce against $18.37.
The world's largest silver ETF, the iShares Silver Trust
<SLV>, said its holdings fell 67.1 tonnes from the day before to
8,958.68 tonnes on Apr. 15. Its holdings have fallen 319.5
tonnes or 3.4 percent so far this month. []
Platinum <XPT=> was at $1,710 an ounce against $1,717.50,
while palladium <XPD=> was at $532.50 against $542.
(Editing by Sue Thomas)
