PRECIOUS-Gold struggles back from one-mth low after G7 statement
* Gold finds relief as dollar slides after G7 currency statement
* Market still mired at lows as investment appeal wanes
* Ignores N.Korea test as macro factors dominate
(Updates throughout, changes dateline from SINGAPORE)
LONDON, Feb 12 (Reuters) - Gold clawed back from its lowest in over a month on Tuesday, finding respite from a broadly falling dollar after the Group of Seven industrialised countries reaffirmed their commitment to market determined exchange rates.
While bullion was able to rally, the market still struggled to sustain positive territory as investors concentrated on a brighter macro economic picture. Gold also failed to reprise its safe-haven role after news that North Korea confirmed it had conducted an underground nuclear test.
Gold hit a trough of $1,638.82 an ounce early on Tuesday, its lowest since January 4. It stood at $1,646.76 by 1120 GMT, flat on the day. U.S. gold futures for April delivery fell 0.1 percent to $1,646.80 an ounce.
G7 nations reiterated their commitment to market-determined exchange rates and said fiscal and monetary policies must not be directed at devaluing currencies.
"Gold cut losses as the G7 statement said they will accept currency movements and they will not do any intervention," Danske Bank analyst Christin Tuxen said.
The G7 intervention followed a round of rhetoric about currency wars, prompted largely by Japan's new government pressing for an aggressive expansion of monetary policy, which has seen the yen weaken sharply.
Technical selling pressure on gold started in the previous session after prices slid through a succession of key support levels, including 200-day moving average of $1,664.50, which suggests that further liquidation is likely, analysts said.
"From here gold will likely remain under pressure with resistance kicking in around the mid $1,650's," MKS Capital said in a note.
Gold has underperformed other precious metals since the start of the year as signs of improved economic recovery deterred investors, who favoured riskier assets like equities and also more industrial metals like platinum and palladium, analysts said.
"The ever increasing macro confidence has dented bullion's traditional safe haven appeal, while alternative and more volatile assets, including PGMs, offer better returns away from gold," VTB analyst Andrey Kryuchenkov said.
"Moreover, inflation pressures are tamed for now, with little support from market participants seeking to mitigate currency devaluations."
In other precious metals, platinum and palladium were trading below their highest levels in more than a year, as investors awaited new catalysts to take positions.
Spot platinum was up 0.8 percent to $1,701.24 an ounce, while palladium was up 0.1 percent to $756.72.
Fundamentals remain strong for the platinum group metals on an improving economic outlook and after mining disruptions in South Africa, as well as a drop in supply from Russia, triggered fears of a deficit.
(Editing by Veronica Brown)