PRECIOUS-Gold buoyed by G7 statement recovers from 1-month low
* Gold finds relief as dollar slides
* Market still mired at lows as investment appeal wanes
* N.Korea test has little effect as macro factors dominate
LONDON, Feb 12 (Reuters) - Gold was up slightly, after clawing back from its lowest in over a month on Tuesday, as the dollar fell following a statement from the Group of Seven industrialised countries reaffirming commitment to market-determined exchange rates.
The market still struggled to sustain positive territory, however, as investors concentrated on a brighter global economic picture. Gold also failed to reprise its safe-haven role after 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 Jan. 4, before rebounding to $1,649.17 by 1259 GMT, up 0.1 percent. U.S. gold futures for April delivery also were up 0.1 percent at $1,650 an ounce.
The G7 nations reiterated a 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.
The dollar index, which rose in early trade on Tuesday to a fresh one-month high against a basket of currencies, fell back after the G7 statement.
Technical selling pressure on gold started in the previous session after prices slid through a succession of key support levels, including a 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 have deterred investors, who have favoured riskier assets such as equities and more industrial metals such as 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."
Platinum and palladium showed strength but remained below their recent highs.
Spot platinum rose 1.5 percent to $1,709.74 an ounce, while palladium was up 1 percent to $763.47.
Fundamentals remained 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 and Jane Baird)