PRECIOUS-Gold holds near $1,600, upbeat US data dents appeal

* Concerns about impact of Cyprus's rescue support gold
    * Physical market interest thin on listless price movement
    * Coming up: U.S. pending home sales; 1400 GMT

 (Adds details, comments; updates prices)
    By Rujun Shen
    SINGAPORE, March 27 (Reuters) - Gold hovered around $1,600
an ounce on Wednesday as promising U.S. data curbed safe-haven
demand, while worries about the euro zone's fiscal health after
Cyprus' unprecedented rescue deal continued to support the
precious metal.
    Orders for long-lasting U.S.-made goods surged last month
and home prices posted their biggest year-on-year gain in
six-and-a-half years in January, the latest signs the U.S.
economy regained momentum early in the first quarter.
 
    Upbeat U.S. data in recent months has boosted confidence in
the recovery of the world's top economy, driving investors to
high-yielding assets such as equities, while little inflationary
pressure has kept gold's appeal as a hedge against rising prices
muted.
    "It's tough to keep investors in gold, and even tougher to
motivate them to buy gold," said Dominic Schnider, analyst at
UBS Wealth Management in Singapore.
    Gold is likely to remain in consolidation in the next few
months, but an improving economic growth could fuel inflation
later in the year, which would help lift gold, he said.
    "When we get into the second half of the year, there will be
growth and there will also be price pressure, which should give
gold stimulus towards $1,800 an ounce," said Schnider.
    Spot gold was little changed at $1,598.16 an ounce by
0308 GMT, after declining for three sessions.
    U.S. gold inched up 0.1 percent to $1,597.40.
    For the short term, worries about the financial stability of
the euro zone after Cyprus clinched a rescue deal that forces
losses on depositors and bank bond holders will keep a floor
under bullion. 
    Reflecting the stalled momentum in gold, holdings of SPDR
Gold Trust, the world's largest gold-backed
exchange-traded fund, were unchanged at 1,221.260 tonnes for the
third session on March 26.
    Activities in Asia's physical gold market slowed to a
trickle as prices bounced in a small range, dealers said.
    "Prices are not going anywhere and there is no buying
interest," said a Singapore-based dealer.
    In Thailand, retail jewellery business was bustling thanks
to a strong baht, which traded near a 16-year high hit
last week, though investment demand was sluggish, she added.    
 
  
 Precious metals prices 0308 GMT
  Metal             Last    Change  Pct chg  YTD pct chg    Volume
  Spot Gold        1598.16   -0.43   -0.03     -4.56
  Spot Silver        28.70   -0.01   -0.03     -5.22
  Spot Platinum    1572.50   -2.00   -0.13      2.44
  Spot Palladium    760.75    0.25   +0.03      9.93
  COMEX GOLD APR3  1597.40    1.70   +0.11     -4.68         2684
  COMEX SILVER MAY3  28.68    0.00   +0.00     -5.13         1290
  Euro/Dollar       1.2854
  Dollar/Yen         94.77
  COMEX gold and silver contracts show the most active months
  

 (Editing by Himani Sarkar)

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