* Growing optimism over economic recovery undermines gold
* Asian buyers take a break during Lunar New Year holiday
* Coming up: ECB chief Trichet's press conference, 1330 GMT
(Updates prices)
By Jan Harvey
LONDON, Feb 3 (Reuters) - Gold eased in Europe on Thursday
as growing optimism over the economic recovery curbed interest
in the metal as a haven from financial market risk, and as Asian
buying dissipated during the Lunar New Year holiday.
Spot gold <XAU=> was bid at $1,328.05 an ounce at 1300 GMT,
against $1,336.00 late in New York on Wednesday. U.S. gold
futures for April delivery <GCJ1> fell $3.90 to $1,328.20.
Concerns over the fallout from unrest in Egypt, where six
people were killed after supporters of president Hosni Mubarak
opened fire on protestors overnight, have underpinned prices,
but have not sparked fresh investment, analysts said.
[]
"Since the sell-off across the commodity complex in early
January, oil and industrial metals have rallied but the precious
metals have been the laggards," said RBS analyst Daniel Major.
"That is due to a combination of better economic data (and) less
need for safe havens."
"Whilst the Egyptian events have clearly had some kind of
risk-negative impact on equity markets and the broader
commodities complex, I don't think it has been sufficient to
drive investors in Europe and the United States into gold."
Other commodities rose on Thursday, with Brent crude oil
climbing above $103 a barrel after violent clashes in Egypt and
copper breaking $10,000 a tonne to a record high. [] []
Gold dipped to a session low at $ an ounce after the
European Central Bank opted to leave interest rates unchanged at
a record low 1.0 percent. Attention is now focused on ECB
President Jean-Claude Trichet's press conference at 1330 GMT.
"ECB President Trichet will likely maintain his recent
hawkish stance, given January's above-target CPI print," said
UBS analyst Edel Tully in a note.
"Rising market expectations for rate hikes in Europe, the UK
and elsewhere have contributed to gold's recent descent... this
relationship is likely to remain in place in the near term, so
hawkish comments from Trichet could pressure gold later today."
European shares softened a touch ahead of the stateement,
while the euro hovered near the previous session's 12-week high
versus the dollar <EUR=>. [] []
LUNAR NEW YEAR DENTS ASIAN BUYING
Buying was also lacklustre in key gold consuming regions,
with buyers absent in China, Hong Kong and Singapore for the
Lunar New Year holiday. []
From a technical perspective, gold prices seem to have built
a base above $1,300 an ounce, but is looking vulnerable to
further declines, according to analysts who study charts of past
price moves to determine future direction.
"The price action between the $1,320s and $1,340s is forming
into a typical consolidation pattern," said ScotiaMocatta in a
note. "While the $1,354 holds we believe the risk is a return to
the downside toward $1,308."
Silver <XAG=> was bid at $28.22 an ounce against $28.36. The
world's largest silver-backed exchange traded fund, the iShares
Silver Trust <SLV>, reported another outflow on Wednesday.
Both the iShares fund and the biggest gold ETF, the SPDR
Gold Trust <GLD>, saw hefty outflows in January, with the
iShares seeing its biggest ever one-month decline and the SPDR
fund its second-largest such outflow. []
Platinum <XPT=> was at $1,821.49 an ounce against $1,829.99,
while palladium <XPD=> was at $803.97 versus $811.22.
Data showed Switzerland, one of the leading clearers of
platinum group metals in Europe, imported 6,374 kg of platinum
and 829 kg of palladium in December. []
(Reporting by Jan Harvey; Editing by William Hardy)
