* Financial markets tread water ahead of Fed
* Largest gold ETF reports fresh 3-tonne outflow
* Aquarius Platinum announces FY loss, blame falling prices
(Releads, updates prices)
By Jan Harvey
LONDON, Aug 12 (Reuters) - Gold prices held near $945 an
ounce in Europe on Wednesday as caution ahead of the Federal
Reserve announcement on monetary policy later in the session
kept investors on the sidelines.
Weakness in physical demand is also preventing prices from
rising, with the world's largest gold-backed exchange-traded
fund recording a further outflow on Tuesday.
Spot gold <XAU=> was bid at $944.40 an ounce at 1102 GMT,
against $944.55 an ounce late in New York on Tuesday. U.S. gold
futures for December delivery <GCZ9> on the COMEX division of
the New York Mercantile Exchange eased 40 cents to $947.20.
Investors are cautious ahead of the Federal Open Market
Committee's decision on rates and accompanying statement at 1815
GMT, analysts said.
"Ahead of the meeting the market is unlikely to get itself
too short because of the possibility of a surprise
announcement," Standard Bank analyst Walter de Wet said.
"If there is going to be a surprise, it's going to be more
quantitative easing, which is bullish for gold," he said. "If
there is no surprise, then possibly gold is going to move lower
than the $940 level, which is until now providing some support."
The dollar was steady against a basket of six major
currencies on Wednesday ahead of the decision, as market
participants pulled back from riskier assets. []
Oil meanwhile hovered below $70 a barrel after four
consecutive sessions of losses as the market awaited U.S.
inventory data and the results of the Fed meeting. []
On other markets, European shares were little changed, while
U.S. stock futures pointed to a lower open on Wall Street.
[]
ETF OUTFLOW
Investment demand for physical gold remains soft, with the
world's largest bullion-backed exchange-traded fund, the SPDR
Gold Trust <GLD>, reporting a new outflow. Its holdings have
fallen more than seven tonnes in the last week. []
"With more investor redemptions expected after a further 3
tonnes of gold was cut from the SPDR ETF yesterday, gold will
remain at risk to further pressure," said TheBullionDesk.com
analyst James Moore.
Gold buying is picking up in the world's largest bullion
consumer, India, however, as jewellers take advantage of a price
decline to stock up during the festive season.
India celebrates the festivals of Raksha Bandhan,
Janmasthami and Ganesh Chaturthi in August. []
In supply news, top 10 gold producer Harmony Gold Mining
<HARJ.J> said a mineworker died after an accident at its
Elandsrand mine in South Africa on Friday. []
Production was suspended at the facility after the incident
and is likely to restart on Thursday, it said.
Meanwhile Aquarius Platinum <AQP.AX>, the world's number
four producer of the white metal, announced a full-year net loss
of $45.7 million, blaming a slide in metals prices. Platinum
fell 47 percent last year as the economic slowdown hit demand.
The company said its production of platinum group metals
fell 9 percent to 455,675 ounces in its last financial year.
[]
Platinum <XPT=> was at $1,230.50 an ounce against $1,237,
while palladium <XPD=> was at $269.50 against $271. Silver
<XAG=> was at $14.26 an ounce against $14.27.
(Additional reporting by Martina Fuchs; Editing by Anthony
Barker)
