* Gold bar premiums surge as lower prices tempt buyers * Euro zone debt crisis still supporting bullion prices * Platinum trades at near-$100 discount to gold By Jan Harvey LONDON, Sept 28 (Reuters) - Gold prices rose on Wednesday, continuing the previous session's consolidation after Monday's heavy losses, as price-sensitive physical buyers bought into the market at lower prices, and as assets seen as higher risk retreated. Spot gold was up 0.6 percent at $1,658.60 an ounce at 0913 GMT. It has steadied in a broad $40 trading range since early Tuesday after sliding to a near three-month low on the previous day. Monday's dramatic $120 price drop has washed out some less committed investors from the market, analysts said, while its resilience at lower levels has fuelled some tentative confidence that higher prices can be sustained. "We reached the 200 day moving average, which should now be the line in the sand," said Saxo Bank senior manager Ole Hansen. "The only worry is obviously how burnt investors have become of this 20 percent correction, as something which was perceived to be safe suddenly was not any more." "The downside may need to be tested and rejected one more time in order to give bulls enough confidence to re-enter," he added. "Strong physical demand should helped the market to find support relatively soon." Gold bar premiums in India, the world's biggest bullion consumer, hit their highest in more than a year to top $2 an ounce after prices fell from the record highs, three importers and a supplier said on Wednesday. Premiums for gold bars elsewhere in Asia jumped to their highest level since at least February after a drop in prices spurred buying from jewellers and speculators, leading to tight supply, according to dealers. Volumes on the Shanghai Gold Exchange hit levels not seen since the Lunar New Year in January, UBS said in a note. "Directional buyers with a long-term horizon have been active in the market," it said. "Such demand and physical buying will do a lot to help gold rebuild its reputation after the recent ugly selloff." "The panic displayed over the past few days has dissipated to a great extent, though there certainly hasn't been a stampede back into gold. Instead, the market remains hesitant and gold continues to consolidate. We believe this is healthier than a steep push higher." U.S. gold futures GCv1 for December delivery were up $8.40 an ounce at $1,660.90.

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