RTRS:REFILE-PRECIOUS-Gold ticks up in volatile trade; bullion premiums steady
* Gold to hover above $1,307-technicals
* Coming Up: U.S. Weekly jobless claims; 1330 GMT
By Lewa Pardomuan
SINGAPORE, Feb 20 (Reuters) - Gold edged up in choppy trade
on Thursday as the U.S. dollar gave up gains, while demand from
the physical sector also underpinned prices.
But expectations the U.S. Federal Reserve would maintain the
pace of a withdrawal of monetary stimulus may diminish gold's
investment appeal as a hedge against inflation.
The precious metal sank to a six-month low on Dec. 31 on
prospects for a global economic recovery.
Gold hit a low of $1,308.34 an ounce on a firmer
dollar before rising as high as $1,314.70 as the U.S. currency
changed course. It stood at $1,313.40 by 0723 GMT, up $2.15.
Bullion crossed the psychological level of $1,300 this
month, but gains have been capped at a 3-1/2 month high of
$1,332.10 hit on Tuesday.
"It's still rangebound for gold. It's broken a few tiers but
at the moment, it's still capped within $1,330," said Brian Lan,
managing director of GoldSilver Central Pte Ltd in Singapore.
"What we can see is that it should correct a little because
the rise has been too sharp," said Lan, who pegged key support
at $1,305 an ounce.
But dealers expected jewellers to buy on dips while India's
plan to keep tax on gold imports at current levels could
underpin sentiment in the physical market as it will lead to
more smuggling.
Gold demand in India is expected to be robust in 2014 and
likely to encourage an increase in smuggling if curbs on bullion
imports remain, the World Gold Council has said.
U.S. gold futures fell $6.90 an ounce to $1,313.50
an ounce.
Premiums for gold bars in Singapore were mostly steady from
last week at $1.20-$1.50 an ounce to spot London prices. Dealers
noted buying from jewellers in Indonesia, while Thailand sold
some scraps to Singapore.
Premiums for gold bars were also steady in Hong Kong at
$1.30 to $1.70 to the spot London prices.
"I've got some light demand from Indonesia but it's more for
factories and not for investment. Thailand has been quite slow
since the beginning of last week," said a dealer in Singapore.
"Business in Thailand has been hit by the unrest. People are
complaining."
A Thai court endorsed on Wednesday Prime Minister Yingluck
Shinawatra's declaration of a state of emergency, a day after
five people were killed in gunbattles in Bangkok, but warned the
government not to use it to disperse peaceful protesters.
The protests are the latest instalment of an eight-year
political battle broadly pitting the Bangkok middle class and
royalist establishment against the mostly rural supporters of
Yingluck and Thaksin.
In other markets, Asian stocks tumbled on Thursday and the
yen firmed as a survey painted a grim picture of China's
manufacturing sector, heightening uncertainty about the outlook
for the region's economic powerhouse.
The dollar index was down 0.1 percent at 80.141. It
had recovered from this year's low 79.927 to hit 80.235 on
Wednesday after minutes from a U.S. Federal Reserve policy
meeting showed policymakers remained committed to reducing its
stimulus at the current pace.
