* Gold's strong hold seen at $1,350/oz-analyst
* Gold rangebound before a plunge-technicals
* Coming up: U.S. NAHB housing market index; 1500 GMT
(Adds details, comments; updates prices)
By Rujun Shen
SINGAPORE, Jan 18 (Reuters) - Gold held steady on Tuesday,
holding on to gains made in the previous session, with a healthy
physical demand out of Asia lending support, but an improving
economic outlook threatens to dampen gold's strength in the
short term.
Euro zone finance ministers discussed on Monday having more
money in their rescue fund and cheaper emergency loans as part
of a package of measures to end the sovereign debt crisis, but
they made no firm decisions.
Spot gold was little changed at $1,363.35 an ounce by
0327 GMT, after dipping to an intraday-low just below $1,360.
U.S. gold futures gained 0.2 percent to $1362.9.
This week's U.S. banks earnings, expected to be strong,
could give investors more reason to be optimistic about the
sector and the economy in general.
"Positive sentiment in the market could reduce some
safe-haven demand for gold," said Ong Yi Ling, an analyst at
Phillip Futures. Ong said that $1,350 would be a strong hold for
gold.
According to Wang Tao, a Reuters market analyst, spot gold
will be rangebound between $1,354 and $1,370 for one trading
session before plunging again towards $1,349 per ounce, as the
downtrend is still intact.
For a 24-hour gold technical outlook:
http://graphics.thomsonreuters.com/WT/20111801085609.jpg
"We will see quite a bit of bargain hunting if price dips
below $1,360. Prices are unlikely to drop much, because the
physical demand ahead of the Lunar New Year will help support
the prices," said Li Ning, an analyst at Shanghai CIFCO Futures.
Premiums for gold bars rose on Monday to hit another
two-year high as jewellers from China rushed to buy ahead of the
Lunar New Year, while purchases from the electronics sector
helped stir up physical trading in Japan, dealers said.
"Demand for physical gold from Hong Kong, Indonesia and
Thailand are very good. We see some good buying from Thailand,"
said a Singapore-based dealer, adding that premium for gold bar
in Singapore stood at $1.90 an ounce above London spot prices.
The dollar index held steady on Tuesday, recovering
from a two-week low hit on Jan 14.
"Euro zone's economy has gradually entered the recovery
track. As a result, we may see euro stabilising this month.
Meanwhile, the market lacks the momentum for the dollar to rally
in the first half of the year," said Li of Shanghai CIFCO.
After rallying 30 percent in 2010, gold has lost about four
percent so far this year, being the second worst performer of
the complex just after silver.
The medium- to long-term outlook on gold remains bullish,
but gold is seen losing steam after economic outlook in the U.S.
and Europe improves, luring investors to riskier assets,
analysts said.
Spot silver was steady at $28.28, down eight percent
so far this year.
Precious metals prices 0327 GMT
Metal Last Change Pct chg YTD pct chg Turnover
Spot Gold 1363.35 0.95 +0.07 -3.95
Spot Silver 28.28 0.02 +0.07 -8.36
Spot Platinum 1811.24 12.39 +0.69 2.47
Spot Palladium 789.47 -0.86 -0.11 -1.25
TOCOM Gold 3633.00 -10.00 -0.27 -2.57 26440
TOCOM Platinum 4870.00 -10.00 -0.20 3.71 9882
TOCOM Silver 75.60 -0.10 -0.13 -6.67 874
TOCOM Palladium 2113.00 -2.00 -0.09 0.76 450
Euro/Dollar 1.3279
Dollar/Yen 82.58
TOCOM prices in yen per gram. Spot prices in $ per ounce.
(Editing by Himani Sarkar)
Reuters
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