US gold closes up on technical buying, dollar drop

NEW YORK, Feb 2 (Reuters) - U.S. gold futures built on
earlier gains to finish strong on Tuesday as the dollar
weakened against the euro. Gold made a fresh, almost two-week
peak as technical resistance levels were breached, drawing in
fresh buying on the way up, traders said.

* For the latest detailed report, click on [GOL/].

GOLD

* April GCJ0 advanced $13, or 1.18 percent, to end at
$1,118 an ounce on COMEX division of NYMEX.

* Range ran from $1,099.50 to a high at $1,119.90, last
seen Jan. 21.

* On Monday, gold advanced 2 percent, its biggest gain
since Nov. 3.

* Gold rallied to a near two-week peak mainly on technical
buying. As prices moved above technical resistance levels, more
buyers entered the market - traders.

* Steep declines and volatility heading into January's
month-end drove some players out of gold who renewed their
buying once prices broke above several key upside targets-
traders.

* Some analysts saw $1,076 an ounce as a buying level.
Others cited the psychological $1,100 level as key.

* Barclays Capital technical analysis note put buying
levels at $1,092 an ounce, $1,116 an ounce, and an upside
target at $1,225.

* Dollar weakness against the euro contributed to gold's
rise - traders. [USD/]

* U.S. dollar weakened as strong corporate earnings and
improving economic data convinced investors to wade into
riskier assets and currencies where returns are higher.

* Earlier, improved U.S. housing data caused some investors
to unwind risk plays, selling gold - traders.

* Pending sales of previously owned U.S. homes rose 1.0
percent to 96.6 in December after falling sharply in November,
helping calm fears of renewed weakness in the troubled housing
sector. Story: [ID:nN02242571] Table: [ID:nWAL2DE689]

* Each time gold prices dipped, however, new buyers took
the opportunity to grab the yellow metal at lower levels -
traders.

* COMEX estimated final volume at 142,093 contracts.

* Spot gold XAU= increased to $1,115.05 by 2:46 p.m. EST
(1946 GMT), from $1,105.55 in late New York business.

* London afternoon gold fix XAUFIX= at $1,111.

SILVER

* March SIH0 added 8.30 cents to finish at $16.7430 an
ounce.

* Range ran $16.555 to $16.81.

* COMEX estimated final volume at 29,529 lots.

* Spot silver XAG= rose to $16.68 an ounce by 2:35 p.m.
EST (1935 GMT) from $16.63 previously.

* London silver XAGFIX= was fixed sharply higher at
$16.78 an ounce.

PLATINUM

* April PLJ0 closed up $39.50, or 2.57 percent, at
$1,578.80 an ounce.

* Spot platinum XPT= climbed to $1,575 in late business
from $1,547.50 in late Monday trade.

* Platinum group metals were helped by Toyota's quick fix
for recalled cars, Australia holding interest rates steady,
South African (energy) politics, and crude oil short covering
due to Wednesday (inventory) figures, according to RBC Wealth
Management's daily report.

* Head of miner Anglo American (AAL.L) said South Africa's
mining sector needs to work closely with utility Eskom to find
ways of cutting power consumption in the face of planned steep
rises in electricity prices. [ID:nLDE6110D4]

PALLADIUM

* March palladium PAH0 climbed $16.20, or 3.78 percent,
to finish at $444.75 an ounce.

* Spot palladium XPD= increased to $437.50 an ounce in
late New York business from $427.50 late Monday.
(Reporting by Carole Vaporean; Editing by Lisa Shumaker)