* Gold climbs as euro wins respite but gains fragile
* Oil, other commodities bounce back as dollar retreats
* Indian import duty hike seen hitting gold imports
(Updates prices)
By Jan Harvey
LONDON, Feb 26 (Reuters) - Gold prices rose on Friday,
supported by a rebound in the euro versus the dollar after the
previous session's weakness, but traders were cautious ahead of
a raft of U.S. data due later in the day.
Spot gold <XAU=> was bid at $1,108.10 an ounce at 1313 GMT,
against $1,104.70 late in New York on Thursday. U.S. gold
futures for April delivery <GCJ0> on the COMEX division of the
New York Mercantile Exchange rose 40 cents to $1,108.90.
The precious metal has gyrated within a range of around
$1,075-1,130 for the last two weeks, but may be vulnerable to
further losses as seasonal factors come into play and if the
dollar continues to strengthen versus the euro, analysts said.
"We see the dollar-euro going to $1.28 by the end of this
year, so that is going to be something of a headwind for gold,"
said Nick Moore, head of commodity strategy at RBS Global
Banking & Markets.
"The gifting season has now ended, and that is very
important," he added. "The seasonality of physical offtake is
that the Chinese New Year represents the end of the gifting
season, which essentially starts in September with Diwali."
On Friday the euro's rebound from the near nine-month low it
hit against the dollar in the previous session supported gold,
but many expect the single currency to stay under pressure amid
concerns about fiscal problems facing Greece. []
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.
Other commodities also recovered, with oil prices steadying
after slipping as low as $77.05 a barrel on Thursday, as the
dollar's retreat provided some respite to the market. []
DATA AWAITED
The currency markets are awaiting fresh direction from a
raft of U.S. data due out later in the day, including
preliminary fourth-quarter GDP numbers at 1330 GMT and final
consumer sentiment data for February at 1455 GMT. []
Elsewhere, traders and analysts said India's move to raise
customs duties on precious metals will impact imports of the
metals that were beginning to bounce back after a sharp fall in
2009 []
Indian gold buying slowed on Friday afternoon as domestic
prices rose after the government's proposal, dealers said. India
was the world's biggest gold consumer last year.
Jewellery buying there fell last year as high prices hit
demand, but the head of the Bombay Bullion Association estimated
on Thursday that the country's gold imports so far in February
were about four times the level of a year ago. []
The head of the financial institute of the Development
Research Centre, a Cabinet think-tank, said China has to keep
buying gold over a long period and any price fall <XAU=> will
present a good buying opportunity. []
An unsourced story that emerged on Thursday that China had
agreed to buy 191 tonnes of gold from the IMF was firmly
rebutted by the author early on Friday. []
Silver <XAG=> was bid at $16.09 an ounce against $16.04,
tracking gains in gold.
"Silver has proven more resilient (than gold) and may
benefit from bargain hunter investment demand," said James
Moore, an analyst at TheBullionDesk.com.
"With the silver/gold ratio likely to shift back towards
63:1, current chart support is pegged at $15.65/15.40."
Platinum <XPT=> was at $1,525 an ounce against $1,529, and
palladium <XPD=> was at $427.50 against $420.
(Editing by James Jukwey)
