Gold steady above $1,360; dollar strength weighs

On Tuesday 18 January 2011, 8:38

SINGAPORE, Jan 18 (Reuters) - Spot gold held steady on Tuesday, retaining small gains from the previous session, as investors watched for the latest news on the euro zone's solutions to its debt crisis, as strength in the dollar weighed.

FUNDAMENTALS

* Spot gold was little changed at $1,361.85 an ounce by 0007 GMT.
* U.S. gold futures were steady at $1,361.5.
* Euro zone finance ministers discussed on Monday ways to have more money in their rescue fund and cheaper emergency loans as part of a package of steps to end the sovereign debt crisis, but they made no firm decisions.
* Investors are expected to shift their focus from gold to industrial commodities and oil, Goldman Sachs' global head of commodities research said on Monday.
* Gold is set to rise this year, but may struggle to replicate last year's stellar performance as the euro zone debt crisis recedes and authorities around the world start to look towards tightening monetary policy, said Tom Kendall, an analyst at Credit Suisse.

MARKET NEWS

* The euro stayed on the backfoot early in Asia on Tuesday, having fallen across the board as uncertainty grew over whether officials would agree to beef up a euro zone safety fund this week, putting the currency on shaky ground again.