Gold firm on physical demand, platinum at 30-month high

By Clarence Fernandez

SINGAPORE | Tue Jan 18, 2011 9:22pm EST

SINGAPORE (Reuters) - Spot gold prices firmed a touch on Wednesday, supported by steady physical demand in Asia and strength in the euro currency, while platinum hit a 30-month high on the improved economic outlook.

FUNDAMENTALS

* Spot gold rose by 0.4 percent to $1,372.6 an ounce by 0056 GMT.
* U.S. gold futures gained 0.3 percent to $1,372.
* Spot platinum rose to $1,832 an ounce, its highest since July 2008, before easing to $1,830.74.
* Strong data from Germany sent the euro to a one-month high on Tuesday, and the single currency stood on a firm footing. The dollar index .DXY edged lower.
* German investors are increasingly optimistic about the economy and half expect higher interest rates by July, a survey showed, highlighting the two-speed euro zone recovery and the dilemma it creates for the ECB.
* Holdings in the SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, fell 2.428 tonnes to 1,256.897 tonnes by Jan 18.
* Holdings in the iShares Silver Trust, the world's largest silver-backed exchange-traded fund, fell more than one percent to 10,585.95 tonnes by Jan 18, lowest since early November.
* Spot silver rose by nearly one percent to $29.11.

MARKET NEWS

* U.S. stocks gained on Tuesday, overcoming weak Citigroup results and concerns circling Apple after news of Chief Executive Steve Jobs' medical leave. .