Gold was steady but failed to rebound on Wednesday after falling more than 1 percent in the previous session as Greece's plan to end a standoff with creditors lifted the appetite for risky assets such as equities.
FUNDAMENTALS
* Spot gold was little changed at $1,260.86 an ounce by 0018 GMT, after falling 1.2 percent on Tuesday. That marked gold's fourth drop in five sessions.
* U.S. gold for April delivery was also nearly flat at $1,261.50 an ounce.
* Greece's new government dropped calls for a write-off of its foreign debt and proposed ending a standoff with its official creditors by swapping the debt for growth-linked bonds.
* New orders for U.S. factory goods fell for a fifth straight month in December, but a smaller-than-previously reported drop in business spending plans supported views of a rebound in the months ahead.
* The world's largest gold-backed exchange-traded fund, SPDR Gold Trust, said its holdings slipped to 24.59 million ounces on Tuesday from 24.65 million ounces the day before, which was the highest level since October.
MARKET NEWS
* Asian stocks rose on the back of Greece's debt plan while the U.S. dollar nursed big losses as a revival in risk appetite swept through crowded trading positions.
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