SINGAPORE (Reuters) - Gold briefly traded around $424 an ounce in volatile Asian trade on Monday and was expected to move higher in Europe and New York as fresh buying emerged after the euro rebounded against the dollar.

Gold rose to a 3-week high of $424.65 on Friday after weaker-than-expected U.S. employment data caused the dollar to fall briefly against the euro. Some dealers said gold would break a key resistance of $425 and hit a previous high of around $430.

"I'm looking to buy today with a tight stop from current levels," said one dealer in Singapore, which is Southeast Asia's largest bullion trading centre. "My trading system has generated a buy signal and it looks OK so far."

Spot gold was trading at $423.85/424.35 an ounce by 0445 GMT, compared with $423.40/424.10 an ounce last quoted in New York and London's afternoon fix at $423.55 an ounce.

The euro was trading at $1.2260 up slightly from late New York levels on Friday. A weaker dollar makes dollar-priced gold more attractive for holders of other currencies.

The euro has lost nearly 10 percent in value against the dollar so far this year and is under pressure following the rejection of a European Union constitution by EU members France and the Netherlands.

Fresh talk emerged about International Monetary Fund (IMF) gold reserves being used to fund debt relief. Reaction was muted in Asia but dealers would keep an eye on this week's meeting of the Group of Eight industrial nations in London.

A British Treasury official said the use of IMF gold reserves to fund debt relief was still an option being considered by the group. "The IMF talk has been there for some time. Let's see how it goes. It can be a big factor but I don't see any short-term impact," said another Singapore dealer.

Britain's finance minister Gordon Brown has proposed selling or revaluing IMF bullion, the third largest reserves in the world, to raise cash to write off African countries' debts to international organisations.

But the United States, which has the power of veto, has said it sees no need for the IMF to sell gold, since poor countries owe only a small portion of their overall debt to the group.

"Some base metals seem to be very strong and copper prices are shooting up. I think we will see some buying in gold as well," said the second Singapore dealer.

"I see a new trading range and if we manage to crack $425, we will go further to $430," he said.

Other precious metals were mixed, with silver moving away from a 12-week high of $7.60 an ounce hit last Thursday -- just below this year's twin peaks at $7.61 hit in March.

Spot silver was at $7.47/7.49 an ounce, higher than $7.45/7.48 last quoted in New York.

Platinum was at $877/882 an ounce, versus $873/877 late in New York.Sister metal palladium was hardly changed from New York's levels at $183/$188 an ounce.