* Palladium near 9-year high
* Coming up: U.S. weekly mortgage index; 1200 GMT
(Adds details, comments; update prices)
By Rujun Shen
SINGAPORE, Dec 29 (Reuters) - Gold prices hovered near
their two-week high above $1,400 on Wednesday as lackluster
economic data from the United States burnished the metal's
safe-haven appeal, while bullish forecast for next year helped
keep the market sentiment buoyant.
Latest U.S. data, showing consumer confidence unexpectedly
deteriorated in December and prices of single-family homes
fell almost double the expected pace in October, was at odds
with other signs suggesting recovery was accelerating in the
world's largest economy. []
"The U.S. economy outlook and monetary policy is a key
factor that influences gold prices. We've seen data alternate
between good and bad, showing that the economy is recovering,
but without a strong momentum yet," said Hou Xinqiang, an
analyst at Jinrui Futures based in China.
Hou expected gold prices to be rangebound with a strong
support level at $1,360 in the short term, before they rally
in the coming year.
Spot gold edged down 0.1 percent at $1,403.47 an
ounce by 0309 GMT, after hitting a two-week high of $1,406.75
in the previous session. U.S. gold futures were nearly
flat at $1,404.4 an ounce.
Trading on the physical market was thin, as most market
players were away on holidays, dealers said.
"Yesterday we saw some selling around $1,385, and today
the market is quieter than the past two days," said a
Singapore-based dealer.
"Jewellers are not buying at such price levels. It's
investors and hedge funds that would buy, betting on further
price rally," said a Singapore-based dealer, adding that among
other factors, the uncertainty around the euro zone's
sovereign debt crisis, would continue to support gold.
U.S. Treasury yields inched up in Asia on short covering
after a jump on Tuesday, on growing safe-haven appetite that
tends to benefit the bullion as well.
The dollar index was steady, after bouncing from a
1-1/2 week low on Tuesday.
Spot silver declined 0.4 percent to $30.15 an
ounce, after reaching a session-high of $30.27 which is 40
cents below the 30-year peak of $30.68.
Spot palladium reached an intra-day high of $785.75
an ounce, just off $787, its highest since March 2001. It was
trading at $783.22 an ounce.
Spot platinum was at $1,745.74, down about half a
percent.
Analysts have had high hopes on the platinum group metals,
citing robust growth in China's auto industry which is
expected to boost consumption of the PGM, especially
palladium, used to produce
autocatalyst.[][]
However, China has said it will end tax incentives for
small cars on Jan. 1, a long-anticipated move that would apply
the brakes to the runaway expansion of the world's largest
auto market. []
Precious metals prices at 0309 GMT
Metal Last Change Pct chg YTD pct chg Turnover
Spot Gold 1403.47 -2.03 -0.14 28.09
Spot Silver 30.15 -0.11 -0.36 79.14
Spot Platinum 1745.74 -7.50 -0.43 19.00
Spot Palladium 783.22 -2.00 -0.25 93.15
TOCOM Gold 3728.00 29.00 +0.78 14.39 27292
TOCOM Platinum 4691.00 4.00 +0.09 7.08 7977
TOCOM Silver 80.30 1.90 +2.42 55.32 1570
TOCOM Palladium 2092.00 28.00 +1.36 79.57 676
Euro/Dollar 1.3127
Dollar/Yen 82.27
TOCOM prices in yen per gram. Spot prices in $ per ounce.
(Editing by Himani Sarkar)
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