* Gold may fall towards $1,290-technicals
* Coming Up: ADP employer services report; 1315 GMT
(Updates prices, adds quotes)
By Lewa Pardomuan
SINGAPORE, Feb 2 (Reuters) - Gold barely moved on Wednesday
as rising equities and hopes for further economic recovery in
the United States prompted some investors to shift to riskier
assets, but lower prices could spur bargain hunting from
jewellers.
The safe-haven appeal of gold was also dented by easing
tensions in Egypt after President Hosni Mubarak said he would
surrender power in September, offering a mixture of concessions
and defiance to Egyptians who marched a million strong to demand
his 30-year-rule end immediately.
Investors awaited the release of the ADP Employer Services
report at 1315 GMT, which could be supportive for U.S. stocks
and the dollar if the numbers were better than expected. Most
recent U.S. indicators have suggested the economy is picking up
steam.
Spot gold hit a low around $1,337 an ounce before
steadying at $1,340.70 by 0243 GMT -- well below a lifetime high
around $1,430 struck in December. Trading slowed to a trickle in
Asia ahead of the Lunar New Year celebration.
"If we see employment and job creations start to pick up, it
will add on to the prevailing sense of economic optimism in the
market," said Ong Yi Ling, investment analyst at Phillip Futures
in Singapore.
"So gold could come under some pressure as investors move
into other risk assets like equities and industrial metals. I
think I will look at first support for gold at about $1,325 and
the next level will be about $1,300."
The Nikkei was on track for its biggest daily jump in two
and a half months on Wednesday after global markets rallied on
strong manufacturing data, robust U.S. earnings and easing
concerns about the Middle East.
ADP Employer Services report later in the day is expected to
show U.S. private employers added 145,000 jobs in January.
Forecasts from economists polled by Reuters range from 75,000 to
250,000.
U.S. gold futures for April added $1.7 to 1,342 an
ounce, having settled around $5 higher on weaker U.S. dollar.
Spot gold may resume its downtrend this week and fall
to $1,290-$1,280, as it is unable to break above an upper
channel line resistance at $1,346, according to Wang Tao, who is
a Reuters market analyst for commodities and energy technicals.
For a weekly gold technical outlook:
http://graphics.thomsonreuters.com/WT/20110202093908.jpg
In the physical market, dealers noted buying interest from
several buyers in Asia, keeping premiums for gold bars steady at
their highest levels in at least seven years in Singapore and
Hong Kong.
"Things have slowed down but we receive orders from clients
from Thailand and India. Premium remains at $1.90 at my end,"
said a dealer in Singapore.
Gold imports in India, the world's largest consumer of the
precious metal, rose 18 percent in January to 40 tonnes
provisionally, and next month's wedding season could further
boost demand, head of a trade body said.
In India, which accounts for 20 percent of global demand
for jewellery, gold is widely given in religious celebrations
and weddings.
The euro rose to its highest level in nearly three months,
extending gains on rising investor risk appetite. The euro rose
to $1.3853 , its highest level since early November.
Precious metals prices 0243 GMT
Metal Last Change Pct chg YTD pct chg Turnover
Spot Gold 1340.70 0.25 +0.02 -5.55
Spot Silver 28.54 0.05 +0.18 -7.52
Spot Platinum 1832.50 7.50 +0.41 3.68
Spot Palladium 820.72 1.25 +0.15 2.65
TOCOM Gold 3527.00 -7.00 -0.20 -5.42 34625
TOCOM Platinum 4855.00 63.00 +1.31 3.39 9469
TOCOM Silver 74.80 0.60 +0.81 -7.65 635
TOCOM Palladium 2164.00 -5.00 -0.23 3.20 190
Euro/Dollar 1.3842
Dollar/Yen 81.44
TOCOM prices in yen per gram. Spot prices in $ per ounce.
(Editing by Himani Sarkar)
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