PRECIOUS-Gold rebounds from 2010 lows after ECB rate decision

* ECB cuts deposit rate to -0.30 percent
* SPDR Gold Trust sees biggest outflow since 2011
* Silver, platinum bounce back from multi-year lows

(Updates prices; adds comment, second byline, NEW YORK
dateline)
By Marcy Nicholson and Jan Harvey
NEW YORK/LONDON, Dec 3 (Reuters) - Gold bounced from near
six-year lows on Thursday in line with a sharp rebound in the
euro, rising 1 percent after the European Central Bank (ECB)
announced the minimum cut in its deposit rate that investors had
been expecting.
The ECB cut its deposit rate to -0.30 percent from -0.20
percent, but left its main refinancing rate, which determines
the cost of borrowing for banks at the ECB's weekly auction,
unchanged at 0.05. ID:nL8N13S2V9
The cut was smaller than some traders had expected, leading
to a 3 percent rebound in the euro EUR= against the dollar.
"Every article I read and everyone I spoke to (ahead of the
announcement) was thinking of a rate cut," said Afshin Nabavi,
head of trading at MKS.
"When they left (the main refinancing) rate unchanged, the
market was rather shocked."
Spot gold XAU= was up 1.1 percent at $1,064.71 per ounce
at 3:22 p.m. EST (2022 GMT), after falling to its lowest since
February 2010 at $1,045.85 an ounce. Earlier weakness came from
Federal Reserve Chair Janet Yellen's comment on Wednesday that
shored up expectations for a U.S. rate hike this month.

A hike at the Dec. 15-16 policy meeting would be the first
in nearly a decade. Rising rates tend to weigh on gold, as they
lift the opportunity cost of holding non-interest paying assets.
U.S. gold futures GCv1 for February delivery settled up
0.7 percent at $1,061.20.
"I would attribute most of the rally to the weakness in the
U.S. dollar," said Bill O'Neill, co-founder of commodities
investment firm Logic Advisors in New Jersey, adding that he did
not expect the session's short-covering rally to "have legs".
U.S. nonfarm payrolls data on Friday will be keenly watched
for more clues on the direction of U.S. monetary policy.
"(If) the labor market report tomorrow isn't as strong as
expected, (we could see) some short covering in gold futures,"
Julius Baer analyst Carsten Menke said. "However, that does not
change the longer term picture at all, that we are just in an
environment where gold is not attractive."
The world's largest gold-backed exchange-traded fund, New
York-listed SPDR Gold Shares GLD fell 2.41 percent to 639.02
tonnes on Wednesday, the lowest since September 2008 and biggest
single-day percentage drop in four years.
Silver XAG= was up 0.7 percent to $14.12, after hitting
its lowest since August 2009 at $13.79 an ounce. Platinum XPT=
was up 1.3 percent at $841.49 an ounce, after touching a
seven-year low of $819.75, while palladium XPD= was up 2.5
percent at $537.61 an ounce after touching a three-month low at
$521.72.