PRECIOUS-Gold forced below $1,360, dollar rally gathers pace

                                
 * Rising dollar adds pressure to gold prices
* SPDR gold ETF reports further small outflow
* Platinum group metals ease from multi-year highs
                                
 (Updates with comment, refreshes prices)
                                
 By Jan Harvey
                                
 LONDON, Feb 10 (Reuters) - Gold fell below $1,360 an ounce
on Thursday after upbeat U.S. jobs data reinforced investor
optimism over the outlook for growth and eroded some appetite
for perceived safe-havens.
                                
 The dollar <.DXY> rallied after U.S. government data showed
new claims for unemployment benefits dropped more than expected
last week to their lowest in 2-1/2 years. [ID:nN10274526]
                                
 The gold price has fluctuated between $1,340 and $1,370 this
week, awaiting fresh direction, while Asian consumer buying has
been light following the Lunar New Year holidays. 
                                
 While there are currently few incentives to buy gold, given
improving appetite for higher risk assets, and rising bond
yields, few investors seem prepared to sell heavily.
                                
 Spot gold <XAU=> was bid at $1,354.75 an ounce at 1440 GMT,
against $1,362.89 late in New York on Wednesday. U.S. gold
futures for April delivery <GCJ1> fell $10.50 to $1,355.20.
                                
 "It is currently a bit negative for gold that investor risk
appetite is increasing and they investor more in the stock
market," said Peter Fertig, a consultant for Quantitative
Commodity Research.
                                
 The world's largest gold exchange-traded fund, New York's
SPDR Gold Trust <GLD>, reported a small outflow on Wednesday,
signalling that investment is still lacklustre. [GOL/SPDR]
                                
 "Since the beginning of the year we have seen outflows from
the ETFs. We have seen lower risk aversion day by day, and today
the stronger dollar seems to be also taking its toll," said
Commerzbank analyst Eugen Weinberg.
                                
 "We are still very bullish in the longer term and believe
new all-time highs are very possible towards the end of the
year. But at the moment, gold seems to not be the favourite.
During economic recovery, other metals are in stronger demand."
                                
 The dollar rose broadly, aided by better-than-expected
weekly jobs data and by a rise in Treasury yields, while the
euro <EUR=> fell as investors fretted about Europe's lack of
progress in tackling its debt crisis. [FRX/]
                                
 A stronger dollar tends to pressure gold, as it curbs its
appeal as an alternative asset and makes dollar-priced
commodities more expensive for holders of other currencies,
though the relationship has weakened in the last year.
                                
 On the wider markets, European shares fell, hit by
disappointment with results from some index heavyweights
including Credit Suisse <CSGN.VX> and by renewed sovereign debt
concerns after Portugal's government bond spreads widened. [.EU]
                                
 
                                
 ASIAN DEMAND SOFT
                                
 In India, the world's largest consumer of physical gold,
demand remained soft as buyers awaited fresh price falls.
Dealers said suppliers hiked premiums charged on London prices
to $2.20-$2.50 as availability was limited by supply issues
after heavy snowfalls in refining areas. [ID:nSGE71904C]
                                
 Demand in number two consumer China was also muted after the
Lunar New Year holiday. Although the festival officially ended
on Wednesday, most buyers in China are not expected to return to
the market until Monday, dealers said.
                                
 Among other precious metals, silver <XAG=> was bid at $29.90
an ounce against $30.17, down nearly 1 percent on the day.
                                
 Platinum <XPT=> was at $1,830.99 an ounce against $1,853.49,
while palladium <XPD=> was at $818.97 against $826.47.
                                
 Platinum reached its highest in 2-1/2 years on Wednesday and
palladium a ten-year peak, amid expectations that rising car
demand would lift consumption of the autocatalyst metals. Supply
issues are also supportive, analysts said.
                                
 "Platinum producers face high cost inflation driven by
rising labour and power costs and the impact of (rand)
appreciation," said Sanford Bernstein in a note.
                                
 "Platinum prices, unlike other commodities, have also been
relatively flat, resulting in falling margins, returns and cash
flows. In the short term, low profits and cash flows limit...
producers' ability and willingness to invest in new projects."
                                
 "We believe that supply constraints and likely demand
recovery make platinum an attractive commodity in the mid- to
long-term," it said.
 (Additional reporting by Amanda Cooper; editing by Alison
Birrane)