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PRECIOUS-Gold keeps losses as equities rebound dents safe-haven demand

SINGAPORE, Feb 16 (Reuters) - Gold nursed steep losses on
Tuesday, trading well below a one-year high reached last week,
as a rebound in global equities and the return of risk appetite
dulled demand for the safe-haven asset. 
    
    FUNDAMENTALS
    * Spot gold held steady at $1,208.56 an ounce by 0042
GMT. The metal fell to a session low of $1,201.65 on Monday,
before closing the day down 2.3 percent.
    * On Thursday, gold hit a year-high of $1,260.60 as concerns
over the health of the banking sector and fears of a global
slowdown prompted investors to stay clear of equities and buy
safe-haven gold.
    * But world stocks rose sharply on Monday as China's central
bank fixed the yuan at a much stronger rate and oil cemented
recent gains, easing fears of global deflation. 
    * The dollar pulled away from multi-month lows against the
yen and the euro. 
    * Top consumer China's return from a week-long holiday did
not help either. Chinese investors sold into gold's rally, a
sign they do not expect prices to go much higher and cannot be
counted on to support the market, with post-Lunar New Year
demand set to falter. 
    * A correction in gold prices had been expected as the metal
had risen quickly over a short period of time. It gained $200
from its January lows to its year-high last week, when it also
posted its best week since 2011. 
    * Further consolidation in the stock markets could see gold
retrace more. 
    * Goldman Sachs said it expects lower gold prices, with a
three-month target of $1,100 per ounce and 12-month target of
$1,000.
    * Among other precious metals, spot silver steadied
after falling 2.4 percent on Monday. Platinum edged up
0.7 percent, while palladium was down 0.2 percent. 
    * For the top stories on metals and other news, click
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    MARKET NEWS
    * Asian shares are expected to consolidate gains on Tuesday
as the Chinese currency and shares show signs of stability, oil
prices rebound, and solid U.S. consumption data suggest last
week's sell-off was overdone.
        
    PRICES AT 0042 GMT
 Metal             Last      Change   Pct chg
                                              
 Spot gold          1208.56    -0.74     -0.06
 Spot silver         15.333    0.002      0.01
 Spot platinum       938.71     6.46      0.69
 Spot palladium       510.5       -1      -0.2
                                              
 COMEX gold and silver contracts show the most
 active months
 
 (Reporting by A. Ananthalakshmi; Editing by Richard Pullin)
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