WELLINGTON (Dow Jones)--Gold was holding steady in early Asian session Thursday with traders and analysts expecting prices to breach key resistance at $1,800 a troy ounce again in the next couple of days as investors continue to seek safety amid lingering economic uncertainty. At 0519 GMT, spot gold was at $1,791.30/oz, up $2.30 from its previous close. Demand for the yellow metal has been underpinned by an uncertain global outlook as investors remained jittery about European fiscal position and slow global growth. "Precious metals may continue their short-term upward trend today," said MF Global analyst Tom Pawlicki. Weak economic data and a lack of confidence in Europe after a meeting of German Chancellor Angela Merkel and French President Nicolas Sarkozy Tuesday pushed gold's safe-haven demand despite signs of increased risk appetite. The summit was the latest ripple as proposals to tackle Europe's sovereign debt problems were viewed by market participants as too mild. Analysts and traders remain bullish on gold's long-term outlook as most of the problems of potential sovereign debt default and slow global growth are unlikely to be resolved anytime soon. Spot gold had touched a record of $1,814.89/oz reached on August 11. "We have a positive outlook for gold," Helen Lau, senior analyst at brokerage UOB Kay Hian, said, who felt that there is still quite substantial upside potential at levels close to $1,800/oz. She said for many investors and central banks, the yellow metal remains a perfect portfolio diversifier at a time when there are concerns over the health of the U.S. economy. However, some traders and analysts don't share her bullish views and expect gold to pull back in the short-term as they feel prices are overextended. "Gold has been over bought and prices are due for a correction," said a Singapore-based trader. Media reports said the U.S. bank Wells Fargo & Co also joined the list with their analysts warning that speculative demand from investors has pushed the gold market into a bubble which is poised to burst with substantial price risk to the yellow metal once the fear another recession abates. Silver and the platinum group metals also rose Thursday with gold but demand has generally been muted due to slower economic growth. Silver and platinum and have industrial applications and a bleak economic outlook has capped their upside potential. At 0519 GMT, spot silver was at $40.21/oz, down 2 cents, platinum was at $1,835/oz, down $2 while palladium was at $775/oz, up $4 from its previous close. -By Arpan Mukherjee, Dow Jones Newswires; 64-4-471-5990; arpan.mukherjee@dowjones.com

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