SINGAPORE, Feb 9 (Reuters) - Gold held steady above
$1,730 an ounce on Thursday, after dropping about a percent in
the previous session, as a surprisingly high China inflation
number supported prices, while investors also focused on
Greece's debt talks for direction.	
    Gold came under pressure as the euro softened after Greek
political leaders failed to conclude a deal for a bailout
package crucial to avoiding a messy debt default, but the
higher-than-expected inflation data out of China helped bullion
pare early losses.   	
    "Once the higher CPI (consumer price index) came out,
inflation worries prompted traditional buyers to come in
quickly," said a U.S.-based trader.	
    Spot gold was little changed at $1,733.59 an ounce by
0323 GMT, recovering from an intra-day low of $1,725.49. U.S.
gold edged up 0.3 percent to $1,736.40 an ounce.	
    China's annual inflation rate accelerated to 4.5 percent in
January, well ahead of market expectations and breaking a
five-month trend of easing price pressures as consumers ramped
up spending during the Chinese Lunar New Year holiday season. 	
 	
    The inflation data may temper hopes of aggressive easing by
China's central bank in the near term, but many economists
expect inflation to ease February onwards, leaving China's
policy of targeted monetary and fiscal easing intact.
 	
    Gold is seen as a good inflation hedge and benefits when
accommodative monetary policies raise inflation outlook.	
    Technical analysis suggested that spot could fall to $1,698
an ounce during the day, said Reuters market analyst Wang Tao.
 	
    	
    Though Greece is widely expected to reach a deal with its
international lenders on the bailout deal, its trouble is likely
to go on, supporting safe-haven interest in gold in the longer
term, analysts and traders have said. 	
    Later in the day investors will focus on what the European
Central Bank is willing to do to help Greece when it holds its
monthly policy meeting, with interest rates expected to stay on
hold ahead of a major funding operation later this month.
 	
    "Gold is likely to remain in a sideways mode for a while
between $1,700 and $1,800, unless we see any big surprise that
could indicate a clear direction," said Hou Xinqiang, an analyst
at Jinrui Futures in the southern city of Shenzhen.	
    The gold-silver ratio dipped to around 51, its lowest level
in more than three months. 	
    Spot silver was nearly flat at $33.97.	
    	
   Precious metals prices 0323 GMT
  Metal             Last    Change  Pct chg  YTD pct chg    Volume
  Spot Gold        1733.59    0.20   +0.01     10.86
  Spot Silver        33.97    0.01   +0.03     22.68
  Spot Platinum    1661.50    1.01   +0.06     19.27
  Spot Palladium    712.50    2.00   +0.28      9.20
  COMEX GOLD APR2  1736.40    5.10   +0.29     10.82         9072
  COMEX SILVER MAR2  34.00    0.30   +0.88     21.80         1059
  Euro/Dollar       1.3258
  Dollar/Yen         77.14

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