* Technicals support after 1-percent gold price slide
* Euro remains depressed by debt worries but losses limited
* SPDR gold ETF sees 0.609-tonne outflow on Wednesday
(Updates, adds comment, changes dateline from SINGAPORE)
By Jan Harvey
LONDON, March 11 (Reuters) - Gold steadied in Europe on
Thursday as the euro arrested its slide against the dollar, with
bargain hunting and technical support helping the metal
stabilise after the previous session's 1.2 percent fall.
Spot gold <XAU=> was bid at $1,107.90 an ounce at 1010 GMT,
against $1,107.85 late in New York on Wednesday. U.S. gold
futures for April delivery <GCJ0> on the COMEX division of the
New York Mercantile Exchange rose 10 cents to $1,108.20.
Prices have found good technical support at around $1,104 an
ounce, and the metal has run into solid buying interest on the
dips as investors take advantage of low prices to buy.
"Demand is certainly visible in the $1,101-1,105 range, and
that is probably helping the metal for a immediate crash," said
Pradeep Unni, senior analyst at Richcomm Global Services. "We
hear there are lot of buy orders at levels below $1,100."
The euro <EUR=> steadied against the dollar, paring earlier
losses. Expectations the economic recovery in Asia remains
broadly on track after strong Chinese data supported appetite
for currencies seen as higher risk, analysts said. []
Persistent fears over sovereign debt issues in peripheral
euro zone economies like Greece and Spain are keeping the single
currency under pressure, however.
Usually the resulting upward pressure on the dollar would
push gold lower, but those sovereign risk issues are also
supporting demand for the metal as a safe store of value.
"As long we don't find any clarity with respect to Greece
and neighbouring nations, gold will continue to fight bearish
pressure," Unni added.
The metal is likely to find a floor around, or just below,
current levels, traders say. With euro and sterling priced gold
still near record highs, current dollar gold prices represent
relatively good value for buyers, analysts say.
The chief executive of the world's number three gold miner,
Anglogold Ashanti <ANGJ.J> said on Monday the company viewed
price dips below $1,100 an ounce as an opportunity to accelerate
buybacks of its outstanding hedged positions. []
SPDR ETF SEES OUTFLOW
Holdings of the world's largest gold-backed exchange-traded
fund, New York's SPDR Gold Trust <GLD>, fell by 0.609 tonnes on
Wednesday, almost the same amount by which they rose at the end
of last week. []
In supply news, South Africa's statistics service said the
country's gold output fell 18.2 percent year-on-year in January.
The republic was the world's second largest gold miner last year
behind China, according to the World Gold Council. []
Among other commodities, oil fell below $82 from the
eight-week high it hit a day ago on expectations that OPEC will
pump above quotas in the second quarter, and as Chinese economic
data rekindled concern of tighter monetary policy. []
Gold tends to track crude prices, as the metal can be bought
as a hedge against oil-led inflation.
Among other precious metals, spot silver <XAG=> was bid at
$17.00 an ounce against $16.97, having retreated from the
seven-week high of $17.62 it hit on Wednesday.
Platinum <XPT=> was at $1,584.50 an ounce against $1,592,
also retreating from the previous session's seven-week highs.
Palladium <XPD=> was the biggest faller of the precious metals,
sliding nearly 3 percent to $449 against $461.50.
The metal has now surrendered all of last week's gains,
which took it to two-year highs at $480 an ounce, as investors
booked profits from the rally.
"Chart support is expected at $1,565/45 in platinum and
between $444-50 in palladium," said James Moore, an analyst at
TheBullionDesk.com.
(Editing by James Jukwey)
