* Markets eye ECB, BoE rates decisions, U.S. jobs data
* iShares Silver Trust rises another 1 pct to record
By Jan Harvey
LONDON, Feb 4 (Reuters) - Gold held around $900 an ounce on
Wednesday as the dollar retained its gains against the euro
after a report showed U.S. private sector employment fell in
line with expectations in January.
Spot gold <XAU=> was quoted at $900.20/902.20 an ounce at
1342 GMT, against $900.40 an ounce late in New York on Tuesday.
U.S. gold futures for April <GCJ9> delivery on the COMEX
division of the New York Mercantile Exchange rose $8.50 to
$900.50 an ounce.
The market is awaiting interest rates announcements from
European central banks on Thursday and key U.S. jobs data on
Friday for fresh direction, but remains supported by demand for
gold as a safe store of value, analysts said.
Dresdner Kleinwort consultant Peter Fertig said while the
ECB is highly unlikely to cut rates, comments made at the press
conference following its rate-setting meeting "could surprise".
He added U.S. non-farm payrolls reports normally lead to
increased volatility in the foreign exchange markets, and could
have a significant impact on gold.
The dollar held onto its gains against the euro after a U.S.
report on private sector employment met expectations.
[]
Oil prices were steady, supported by the prospect of further
OPEC supply cuts. []
Gold is likely to remain relatively rangebound until fresh
news appears, with the precious metal's failure to break above
$930 an ounce last week dampening some enthusiasm, traders said.
"It feels like gold will be in a range of $880-930 for the
short term," Afshin Nabavi, head of trading at MKS Finance in
Geneva, said.
"Tomorrow is a big day as far as the news is concerned, so
we will see what the central banks want to do with their
interest rates."
For gold, risk aversion is likely to provide significant
support for the precious metal.
"Gold is a natural place for people to turn to in these
times, when assets such as mortgage backed securities, that were
regarded as ultra safe 18 months ago, have turned out to be
anything but," said Evy Hambro, manager of BlackRock's World
Gold and World Mining funds.
Demand for gold as a safe store of value has surged recently
as other assets have become increasingly volatile. Physical
bullion in the form of coins and bars and gold-backed exchange
traded funds have proved popular with investors.
The world's largest gold-backed ETF, the SPDR Gold Trust
<GLD> said its holdings held at a record 853.37 tonnes on
Tuesday, up more than 9 percent from Jan 2.
SLACK
However, demand for gold jewellery in traditionally key
global centres such as India and the Middle East has been soft.
Traders said gold buying in India, the world's biggest gold
market, was slack.
One dealer at a state-run bank in Mumbai told Reuters there
were "no enquiries" from jewellers. []
Turkey also stopped importing gold bullion in January, as
increasing levels of gold scrap coming back onto the market were
enough to meet domestic demand. []
Elsewhere, Swiss bank UBS <UBSN.VX> lifted its 2009 average
gold price forecast to $1,000 an ounce from a previous price
view of $700, citing expected strong safe-haven demand.
It said it sees investment demand for the precious metal
doubling in 2009 compared with 2007. []
Among other precious metals, silver <XAG=> was unchanged at
$12.40/12.48 an ounce from $12.40.
However, investment demand for silver remained strong.
Holdings of the iShares Silver Trust <SLV.A>, the world's
largest silver-backed ETF, rose another 77 tonnes to a record on
Feb 3.
Platinum <XPT=> was at $962.50/967.50 an ounce from $959.50,
while palladium <XPD=> was at $190/195 an ounce against $191.50.
(Reporting by Jan Harvey; Editing by Keiron Henderson)
