* Currency markets steady as traders eye Greece bailout
* Equity markets take on firmer tone but caution remains
* India gold demand slips as prices rise; SPDR ETF unchanged
(Updates, adds comment, changes dateline from TOKYO)
By Jan Harvey
LONDON, Feb 10 (Reuters) - Gold was little changed in Europe
on Wednesday as a slight recovery in the dollar kept a lid on
gains, with traders awaiting more details of a possible bailout
package for Greece to give fresh direction to the markets.
Spot gold <XAU=> was bid at $1,076.15 an ounce at 1001 GMT,
against $1,076.95 late in New York on Tuesday. U.S. gold futures
for April delivery <GCJ0> on the COMEX division of the New York
Mercantile Exchange eased 90 cents to $1,075.80 an ounce.
Richcomm Global Services senior analyst Pradeep Unni said
gold's heavy losses had introduced a weaker note in gold's
technical position last week which persisted.
But he added: "The market is gaining momentum on hopes that
Germany will provide loan guarantees in an effort to calm fears
of a massive government default which has been directly
undermining the strength of the euro-zone and its currency."
"Gold's upside potential clearly seems to be capped, with
rallies likely to be used as fresh selling opportunities," he
said. "Expect pent-up physical demand to emerge on a price dip
below $1,050."
The euro inched lower on Wednesday, relinquishing some gains
made the previous day as the market braced for a European Union
summit, speculating that member countries may help Greece tackle
its fiscal problems. []
The markets are also awaiting Federal Reserve Chairman Ben
Bernanke's testimony before the House Financial Services
Committee hearing on unwinding Federal Reserve liquidity
programmes at 1500 GMT.
The dollar rose last week versus the euro as worries over
the health of some euro zone economies hurt the single currency.
Strength in the U.S. unit curbs gold's appeal as an
alternative asset and makes dollar-priced commodities more
expensive for holders of other currencies.
OIL SLIPS
Among other commodities, oil fell towards $73 a barrel,
weighed down by worries about weak demand in the world's top
consumers after data showed a large build in U.S. crude
inventories and a fall in Chinese imports. []
On the wider markets, world stocks rose and European shares
were led higher by financial stocks as sentiment improved on
signs the European Union may arrange a bailout for troubled
Greece. But traders remain nervous. [] []
"As yet, optimism has not proven sufficient to tip the
balance...in favour of risk trades, and there is an
understandable degree of nervousness that the Greece 'solution'
will prove underwhelming," said Credit Agricole CIB in a note.
"So, it looks like a day of treading water until we get new
disclosures regarding Greece."
On the physical side, Indian gold demand tailed off as
prices recovered, while holdings of the SPDR Gold Trust <GLD>
exchange-traded fund were unchanged. [] []
Among other precious metals, silver <XAG=> was at $15.46 an
ounce against $15.41, platinum <XPT=> at $1,496 an ounce against
$1,502, and palladium <XPD=> at $410.50 against $415.
"Key near-term support is seen from seven-month trendlines
in palladium and platinum at $386 and $1,468, respectively,"
Barclays Capital said in a note.
"Breaks here would likely prove to be the catalyst for the
next leg of precious metal weakness."
(Editing by Sue Thomas)
