Gold steady as U.S. data eyed; platinum group metals rise

By A. Ananthalakshmi

SINGAPORE (Reuters) - Gold was little changed on Tuesday as investors await U.S. economic data for directional cues, while platinum group metals rose for a second day as labour strikes dragged on in key producer South Africa.

Bullion investors were also eyeing developments in Ukraine, after it launched air strikes and a paratrooper assault against pro-Russian rebels who seized an airport on Monday.

Gold has struggled to break above the $1,300 an ounce level.

"The long period of neutrality in the market would mean, most likely, large impulsive movements when a direction is found," said Joyce Liu, analyst at Phillip Futures.

"We are inclined to not take any position now and ride in the direction of the market - whether up or down - when such a direction is found. A bearish break is still more likely," Liu said.

Spot gold was flat at $1,291.50 an ounce by 0340 GMT, after ending flat in the last two weeks. Asian stocks were firmer on Tuesday, biting into gold's appeal as a hedge against riskier assets.

Investors were holding off from big positions ahead of U.S. data on durable goods orders and consumer confidence due to be released later in the day.

Gold's appeal this year has been burnished by the geopolitical risks in Ukraine which have heightened tensions between Russia and the West.

Investors were also eyeing developments in physical markets which have been subdued over the last several weeks.

China has approached foreign banks and gold producers to participate in a global gold exchange in Shanghai, people familiar with the matter said, as the world's top producer and importer of the metal seeks greater influence over pricing.

In No. 2 consumer India, investors are hoping the new government would relax rules imposed last year on gold imports, a move they believe will prompt pent up demand.

Among other precious metals, platinum and palladium both gained as work stoppages continued at Anglo American Platinum, Impala Platinum and Lonmin in the longest strike in South Africa's history.

(Editing by Richard Pullin and Muralikumar Anantharaman)