* Stronger U.S. economic data boosts sentiment
* Euro-dollar below $1.35, further news awaited on Greece
* Coming up: U.S. CFTC metals hearing on Thursday
(Recasts, updates prices, market activity to close; changes
byline, dateline, previously LONDON)
By Frank Tang
NEW YORK, March 23 (Reuters) - Gold prices rose on Tuesday,
rebounding after early losses as optimistic U.S. housing data
boosted investor risk appetite.
The precious metal's rise came after two sessions of
declines that stemmed from worries about a surprise interest
rate hike on Friday in major bullion consumer India.
Bullion eked out gains even though the dollar rose against
the euro. Analysts said gold's inverse relationship with the
U.S. currency has weakened for now.
"People are watching the currencies and what is happening
with the dollar. It's (Gold) holding, and I think that's what
people look to gold for as a place holder ... it's going to
hold its value in times of uncertainty," said Tom Hartman,
broker with Altavest Worldwide Trading.
Spot gold <XAU=> was at $1,102.20 an ounce at 2:39 p.m. EDT
(1839 GMT), up from $1,101.60 late in New York on Monday.
U.S. April gold futures <GCJ0> on the COMEX division of the
NYMEX settled up $4.20 at $1,103.70 an ounce.
Gold had risen early last week in the face of a rising
greenback, boosted by safe-haven buying due to fiscal worries
about Greece and uncertainty about currencies.
The euro slipped against the dollar as investors worried
European Union policy makers were unlikely to provide a rescue
package for Greece at a summit later this week. []
But then a U.S. government report showed sales of
previously ownred homes fell less than expected, and that
fueled gains on Wall Street. []
"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
continues to weigh on the euro."
Gold watchers are awaiting the meeting for the fresh
impetus it may give the currency markets, analysts said.
CFTC METALS HEARING IN FOCUS
Precious metals investors will watch a day-long hearing by
the top U.S. futures regulator on Thursday to determine whether
gold, silver and copper markets need speculative position
limits to prevent price manipulation.
The Commodity Futures Trading Commission, which has
struggled to gain support for a plan to curb concentration in
energy markets, is expected to face even tougher resistance as
it considers whether similar provisions are needed for metals.
In the physical sector, gold imports into India, the
world's biggest bullion consumer, are seen between 23 and 28
tonnes, against 4.8 tonnes a year ago, the head of Bombay
Bullion Association (BBA) said on Tuesday. []
Silver prices also tracked gold to recover losses, with
spot silver <XAG=> at $16.94 an ounce against $16.93.
Platinum <XPT=> was at $1,602 an ounce against $1,597.50,
and palladium <XPD=> was at $459 against $454.50.
Close Change Pct 2009 YTD
Chg Close % Chg
US gold <GCJ0> 1103.70 4.2 0.4 1096.20 0.7
US silver <SIK0> 17.027 0.092 0.5 16.845 1.1
US platinum <PLJ0> 1608.50 7.20 0.4 1471.00 9.3
US palladium <PAM0> 464.55 3.95 0.9 408.85 13.6
Prices at 3:03 p.m. EDT (1903 GMT)
Gold <XAU=> 1102.35 0.75 0.1 1096.35 0.5
Silver <XAG=> 16.94 0.01 0.1 16.84 0.6
Platinum <XPT=> 1600.00 2.50 0.2 1465.50 9.2
Palladium <XPD=> 459.00 4.500 1.0 405.50 13.2
Gold Fix <XAUFIX=> 1101.50 0.75 0.1 1104 -0.2
Silver Fix <XAGFIX=> 16.78 0.00 0.0 16.99 -1.2
Platinum Fix <XPTFIX=> 1598.00 9.00 0.6 1466 9.0
Palladium Fix<XPDFIX=> 458.00 0.00 0.0 402 13.9
(Additional reporting by Jan Harvey in London; Editing by
David Gregorio)
