* Dollar ticks up after U.S. jobs data but gains short-lived
* Financial markets eye outcome of EU meeting on debt crisis
* SPDR gold ETF sees further outflow on Wednesday
(Updates prices, adds comment)
By Jan Harvey
LONDON, Dec 16 (Reuters) - Gold fell 1.3 percent on Thursday
to close in on $1,360 an ounce as a recovery in the dollar
pushed the metal through key support levels, though losses were
limited by persistent concern over the euro zone debt crisis.
The euro briefly turned lower against the dollar after U.S.
jobs data and later extended losses after another report showed
an index of business conditions for the U.S. Mid-Atlantic region
rose in December. []
Spot gold <XAU=> fell as low as $1,361.35 and was bid at
$1,365.80 an ounce at 1549 GMT, against $1,380.45 late on
Wednesday. Earlier it hit a high of $1,386.35. U.S. gold futures
for February delivery <GCG1> fell $19.30 to $1,366.90.
Spot prices hit a record $1,430.95 an ounce earlier this
month on the back of concerns over euro zone debt levels.
Allowing for day-to-day fluctuations, these will provide ongoing
support to prices, analysts said.
"I don't think we will see a sharp decline in gold prices,"
said Commerzbank strategist Daniel Briesemann. "The fundamental
data and especially the debt crisis in the euro zone and its
peripheral countries is too severe to be too optimistic."
The dollar swung higher against the euro on Thursday, rising
0.2 percent. Sentiment towards the single currency remains
fragile as leaders meet at a European Union summit today. []
The single currency is down nearly 7.5 percent so far this
year after concerns over debt hit Ireland and Greece, and
threatened to spread to Portugal and Spain.
At the summit EU leaders will discuss changing the bloc's
treaty to create a permanent crisis-resolution mechanism from
2013, and may look at enlarging their existing crisis fund.
[]
EU officials are conscious that any failure to take decisive
action could be interpreted as weakness, with the threat of
further bond market fallout early next year. []
UNCERTAINTY
"Overall, economic uncertainties are gold-positive with the
currency markets still jittery while fiat currency yields are
set to remain low for a prolonged period of time," said VTB
Capital analyst Andrey Kryuchenkov.
"Safe haven buying will limit the downside on gold in the
short run."
While gold typically moves in the same direction as the euro
in the short term, jitters over the stability of the euro zone
have helped lift the metal this year.
Holdings of the world's largest gold-backed exchange-traded
fund, New York's SPDR Gold Trust <GLD>, eased by another 0.6
tonnes on Wednesday, bringing their total outflows in December
to date to 0.4 tonnes versus inflows of just over 7 tonnes in
the same period of 2009. []
In India, the world's largest consumer of the precious
metal, gold buying slowed as the wedding season neared its end,
shrugging off the impact of a firmer rupee, which makes
dollar-priced gold cheaper for local buyers. []
"Demand is slightly thin," said a Mumbai-based dealer. "They
would hardly come to buy until mid-January."
Elsewhere silver <XAG=> was bid at $28.52 an ounce against
$28.79, platinum <XPT=> was at $1,684.99 an ounce against
$1,695.50 and palladium <XPD=> at $735.50 against $746.72.
Among other commodities, oil and most base metals prices
also eased on Thursday. [] []
(Additional reporting by Amanda Cooper; editing by Keiron
Henderson)
