* Stocks, commods soar on hopes economic crisis is bottoming
* G20 will ask IMF to bring forward gold sale plan-Brown
* ECB cuts rates by smaller-than-expected 25 bps
(Releads, adds comment, updates prices)
By Jan Harvey
LONDON, April 2 (Reuters) - Gold hit a low of $893.70 an
ounce on Thursday after UK Prime Minister Gordon Brown said the
G20 will ask the International Monetary Fund to bring forward
its programme of gold sales and as equities extended gains.
The precious metal had already slipped 3 percent earlier in
the session as tentative hopes for a recovery in the world
economy boosted interest in other assets such as stocks and
industrial commodities, diverting interest from gold.
Spot gold <XAU=> was quoted at $899.00/901.00 an ounce at
1533 GMT from $926.40 late in New York on Wednesday.
U.S. gold futures for April delivery <GCJ9> on the COMEX
division of the New York Mercantile Exchange slipped $25.10 to
$901.00 an ounce.
"Equity markets have bottomed and I think gold will
therefore suffer from here," Citigroup analyst David Thurtell
said.
U.S. stocks rose for a third straight session on Thursday on
optimism the G20 leaders' meeting in London will succeed in
tempering the global economic crisis. []
Leaders of the G20 nations agreed on Thursday to pump an
extra trillion dollars into the troubled global economy through
extra funding for groups like the International Monetary Fund.
[]
"The crucial question will be whether markets are satisfied
with what the leaders of the G20 decide on stimulating the
economy," said Peter Fertig, a consultant at Quantitative
Commodity Research in Germany.
"If (investors) get the impression that the worst is over,
that stock markets are going to stabilise further... that would
be a negative factor for gold," he said.
Brown also said the G20 had asked the IMF to bring forward
its programme of gold sales, raising funds to help the poorest
countries. Any acceleration of official sector sales is likely
to weigh on prices.
ECB RATE CUT
The euro extended gains against the dollar after the ECB
said it is cutting its refinancing rate by 25 basis points to
1.25 percent. []
The ECB would decide on whether to take further non-standard
steps in its monetary policy at its next meeting in May, the
bank's president Jean-Claude Trichet said.
A weaker dollar typically benefits gold, which is often
bought as an alternative asset to the currency. However, the
impact of currencies on the metal are being outweighed by other
factors, such as risk aversion.
The markets are also awaiting key U.S. non-farm payrolls
data on Friday for fresh impetus, traders said.
Among other precious metals, platinum was steady, showing
little reaction to a smaller-than-expected 37 percent drop in
U.S. auto sales in March. []
The metal, which is mainly used as a component in catalytic
converters, shed nearly two-thirds of its value last year after
hitting a record high in March, as the global slowdown battered
the car industry.
Spot platinum <XPT=> was at $1,137.50/1,147.50 an ounce from
$1,133.50, while spot palladium <XPD=> was at $215.50/220.50 an
ounce from $218.
Spot silver <XAG=> eased to $12.75/12.81 an ounce from
$13.01, taking its cue from gold.
(Editing by Sue Thomas)
