* Euro-dollar near $1.35, further news awaited on Greece
* Oil prices slip towards $81/barrel
* Buying seen emerging in Asia as prices ease
(Updates prices, adds comment)
By Jan Harvey
LONDON, March 23 (Reuters) - Gold prices rose on Monday,
recovering earlier losses, as the dollar surrendered some of its
gains versus the euro after data showed sales of previously
owned U.S. homes fell less than expected in February.
Gold slipped as low as $1,094.30 an ounce in earlier trade
as the euro-dollar exchange rate fell below $1.35, but recovered
after the data boosted appetite for risk, supporting the euro.
Spot gold <XAU=> was bid at $1,104.20 an ounce at 1432 GMT,
against $1,101.60 late in New York on Monday. U.S. gold futures
for April delivery <GCJ0> on the COMEX division of the New York
Mercantile Exchange rose $5.30 to $1,104.80 an ounce.
However, gold's gains are fragile, with the euro still under
pressure ahead of a European Union summit later this week which
is likely to tackle a potential plan to help debt-laden Greece.
"Further strength in the dollar could trigger profit-taking
in gold," said Richcomm Global Services analyst Pradeep Unni.
"Disappointment that euro zone leaders are unlikely to come
up with a rescue package for Greece at this week's summit
continue to weigh on the euro."
The euro pared the losses it made in earlier trade versus
the dollar after the U.S. data. It remains under pressure,
however, as European Union leaders clash over possible support
for Greece in the run-up to a summit later this week. []
While German Chancellor Angela Merkel continued to rebuff
calls for a euro zone agreement, European Commission President
Jose Manuel Barroso urged Merkel to agree on a financial safety
net for Athens or risk harm to the euro. []
Gold watchers are awaiting the meeting for the fresh impetus
it may give the currency markets, analysts said.
"The $1.35 level for the euro is really key at this stage,"
Standard Bank analyst Walter de Wet said. "Yesterday, when we
had a drop below $1.35, gold fell quickly and the sell-off in
commodities was equally swift."
"As soon as gold gets to $1,095, there is really decent
physical demand, especially out of Asia, supporting it. That is
still in place, but that buying must be finite. If the dollar
continues to strengthen, the bias must be for gold to go lower."
OIL TURNS HIGHER
Among other commodities, oil turned higher after earlier
falling towards $81 a barrel, also coming under pressure from
dollar strength. []
Physical gold prices in India, the world's biggest bullion
consumer, fell slightly on Tuesday, but traders may resume
buying at these levels to stock up for the wedding season that
begins from April, dealers said. []
Buying has been soft after an unexpected hike in short-term
borrowing and lending rates by the Reserve Bank of India on
Friday hurt sentiment.
Silver prices also recovered, tracking gold, with spot
silver <XAG=> bid at $17.02 an ounce against $16.93.
Holdings of the world's largest silver exchange-traded fund,
the iShares Silver Trust <SLV>, fell 24.4 tonnes from the
previous day to 9,278.18 tonnes as of March 22. []
Platinum <XPT=> was at $1,598 an ounce against $1,597.50,
and palladium <XPD=> was at $459 against $454.50.
Platinum group metals prices have benefited from
expectations car demand in key markets such as the United States
and China will improve this year.
"Chinese official import data for February showed an 88
percent and 197 percent increase in platinum and palladium
imports (respectively) compared to February 2009," HSBC said in
a note.
"This confirms strong Chinese auto and jewellery demand, we
believe, and underpins prices going forward."
(Editing by Sue Thomas)
