PRECIOUS-Gold eases as stocks, dollar buoyant ahead of holidays

* Crude oil rises 3 pct, dollar strengthens
* Chinese demand seen falling for third year in 2016
* GRAPHIC-2015 asset returns: http://link.reuters.com/dub25t

(New throughout, updates prices and market activity; adds
comment; adds second byline, NEW YORK dateline)
By Marcy Nicholson and Jan Harvey
NEW YORK/LONDON, Dec 23 (Reuters) - Gold inched down for the
second straight session on Wednesday, hemmed into a narrow range
in thin pre-holiday trade as major stock markets posted strong
gains and the dollar climbed along with U.S. bond yields.
The metal has struggled to maintain the past week's gains in
thin trade despite a recovery in oil prices, as global stocks
extended a rally into a third day and the dollar .DXY rose 0.3
percent against a basket of major currencies. O/R MKTS/GLOB
Spot gold XAU= was down 0.3 percent at $1,069.15 an ounce
at 1:52 p.m. EST (1852 GMT), while U.S. gold futures GCv1 for
February delivery settled down 0.5 percent at $1,068.30.
Investors are reluctant to take positions into year-end,
dealers said.
"Gold has been stuck in a range for such a long time that no
one wants to do anything with it. At the end of the year, most
books are going to be closed," said Afshin Nabavi, head of
trading at MKS.
Gold prices are down nearly 10 percent so far this year for
a third straight year of losses, made largely in anticipation of
the Fed's interest rate hike, which came this month.
On Wednesday, data showed U.S. personal income in November
rose for an eighth straight month, a factor that should bolster
economic growth next year. New U.S. single-family home sales
that same month rose, though less than expected.

"The narrative here is that the positive economic reports
are going to put pressure on gold," Eli Tesfaye, senior market
strategist for brokerage RJO Futures in Chicago.
Attention is now switching to the speed of U.S. interest
rate hikes next year. Signs that the Fed will lift rates at a
steady pace could feed into still softer gold prices, analysts
said.
"With the growing confidence about the U.S. economic
recovery, the Fed would be quite keen to continue monetary
policy tightening, albeit only gradually over 2016, followed by
a faster pace in the following year," Societe Generale (PA:SOGN) said in a
note.
"This should see the U.S. dollar strengthen over the medium
term, putting pressure on dollar-denominated (gold) prices."
Support for gold from physical markets looks bleak. In top
consumer China, there are fears of a protracted loss of
confidence among buyers, with many predicting that demand could
fall for a third year in 2016.
Silver XAG= was up 0.2 percent at $14.28 an ounce,
platinum XPT= was down 0.4 at $866.85 an ounce, and palladium
XPD= was down 0.3 percent at $551.24 an ounce.