BISINISS WORLD NEWS

SINGAPORE: Gold inched down in slow trade as uncertainties over a bailout package for debt-stricken Greece looked likely to undermine the euro and burnish the U.S. dollar's safe-haven appeal.

Bullion jumped to its highest in nearly a week on Monday before losing ground to track a weaker euro, with dealers expecting the metal to trade in a narrow range before the release of the potentially market-moving U.S. jobless data on Friday.

Spot gold was at $1,117.33 an ounce by 0304 GMT (10:04 p.m. EST), down $1.07 from New York's notional close on Monday, when it rose to its highest in almost a week at $1,123.30 on bargain hunting driven by early gains in the euro.

Gold, which gained 2 percent last month, was struggling to revisit a 1-month high around $1,130 hit in late February and may need to clear a January high around $1,150 to sustain gains, dealers said.

"It seems that gold is consolidating above $1,100. If we break $1,150, maybe we will see more movements upward," said Ronald Leung, director of Lee Cheong Gold Dealers in Hong Kong.

"Nobody wants to commit to anything. Gold may be locked in a range," said Leung, adding that investors would closely watch movements in euro.

Sterling-priced gold was trading below Monday's record around 753 pounds, while bullion in euro terms held near a lifetime high struck two weeks ago.

U.S. gold futures for April delivery were steady at $1,118 an ounce, having traded in a narrow range on Monday.

Sterling slipped on Tuesday and was seen likely to stay weak after tumbling to a 10-month low the previous day, while the euro's outlook remained clouded by uncertainty over a bailout for debt-strapped Greece.

Sterling plunged on Monday on worries that a British election due in months could give neither the opposition Conservatives nor the ruling Labour Party a parliamentary majority, sending sterling-priced gold to record high.

The euro steadied after falling on Monday despite speculation that a visit to Athens by EU Economic Affairs Commissioner Olli Rehn and European Central Bank Executive Board member Juergen Stark could move EU governments closer to a deal to help Greece.

Bullion trading was also muted in Singapore as dealers stayed on the sidelines, waiting for clues from the currency markets.

Investors awaited this week's U.S. jobless data on Friday, which will give more clues on consumer spending. Forecasts are for a loss of 50,000 jobs in February, with the jobless rate seen ticking back up to 9.8 percent.

U.S. crude futures were steady on Tuesday after falling more than 1 percent a day earlier ahead of industry data expected to show rises in U.S. crude stockpiles.

The world's largest gold-backed exchange-traded fund, SPDR Gold Trust, said its holdings stood at 1,106.987 tonnes by March 1, unchanged from the previous business day.

Global commodities prices are expected to rise slightly due to some demand from emerging market economies but a broad-based price spike is unlikely, a senior International Monetary Fund official said on Monday.