By Rujun Shen

SINGAPORE | Mon Jan 2, 2012 11:02pm EST

SINGAPORE (Reuters) - Spot silver jumped more than 2 percent and gold was headed for a third session of gains on Tuesday, as investors returned to the market in the new year with renewed appetite for riskier assets such as commodities.

Although the global economy still faces uncertainties, better-than-expected manufacturing data from China supported sentiment and encouraged investors to return to the market after the year-end credit tightness forced many to the sidelines.

Cash silver rose as much as 2.1 percent to $28.39 an ounce, before easing slightly to $28.20 by 10:01 p.m. EST.

The metal, with extensive industrial applications, lost nearly 10 percent in 2011 as worries about the global economy weakened prospects of industrial metals.

"Silver is one of the more appealing trades of the new year, after a lot of positions have been emptied out," said a Singapore-based trader.

"Now the turn of the year has happened and we will probably see silver back on radar screens for some accounts, especially those with healthy tolerance for risk."

Managed money cut net length on U.S. silver futures and options to 6,200 lots in the week ended December 27, its lowest in more than three years, according to data from the U.S. Commodity Futures Trading Commission.

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Graphic - CFTC commitment of traders: r.reuters.com/buv87r

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Gold too rebounded from last month's losses, although analysts say it is far from re-testing all-time highs hit last September.

Spot gold gained 0.7 percent to $1,576.24 an ounce, after posting a 10-percent rise in 2011.

U.S. gold rose nearly 1 percent to $1,582, before easing to $1,578.20.

Technical analysis suggested spot gold could rise to $1,629 during the day, said Reuters market analyst Wang Tao.

Iran's progress in its nuclear pursuit has gripped the oil market, and could potentially support safe haven demand in gold. But for now, gold's move hinges on the macroeconomic conditions and changes in risk appetite.

"Gold is still trading on risk appetite, rather than acting as a safe haven," said Ong Yi Ling, an analyst at Phillip Futures in Singapore.

China's official purchasing managers' index rose to 50.3 in December from 49 in the previous month, indicating a slight expansion in business activity, sending equities and industrial metals higher in Asia. [ID:nL3E8C100G]

Investors will await a raft of U.S. economic data this week, including ISM Manufacturing PMI later in the day, factory orders on Wednesday and non-farm payroll data on Friday, after recent data showed that the world's top economy was recovering.

(Reporting by Rujun Shen; Editing by Sugita Katyal)