* Gold lifts from Thursday's two-week low
* March U.S. non-farm payrolls data awaited
* Largest silver ETF records outflow
(Updates throughout, changes dateline from TOKYO)
By Jan Harvey
LONDON, April 3 (Reuters) - Gold edged lower on Friday,
extending the previous session's 2.5 percent losses, as equity
markets turned firmer, denting the metal's appeal as a haven.
But traders are largely staying on the sidelines ahead of
key U.S. jobs data due later in the session.
Spot gold <XAU=> eased to $901.30/902.80 an ounce at 0944
GMT from $903.15 late in New York on Thursday.
The metal hit a two-week low on Thursday as a well-received
statement from the G20 leaders' summit boosted hopes the
economic slowdown may be bottoming out.
"Recent (economic) data has not been better, but it has been
better than expected, so now people are talking about a slowdown
of a slowdown," Commerzbank analyst Eugen Weinberg said.
"For quite some time people were too positive for gold, so
it is not surprising we are under pressure."
If gold closes below $900, he said, further losses could be
in order.
European shares gave up early losses to turn positive by
mid-morning on Friday, with banks rebounding and commodities
tracking higher metal and crude prices. The MSCI world equity
index <.MIWD00000PUS> also recovered. []
The stock markets' sharp rally in recent sessions has
deflected interest from gold, and the metal has slipped as
investors sold bullion holdings to buy other assets.
Gold was also pressured by reports the G20 was discussing
the sale of 403 tonnes of gold held by the International
Monetary Fund, approved last year.
Investment bank UBS said it expected the sale to be
conducted under the terms of the Central Bank Gold Agreement.
Signatories of the pact, which include the IMF and the European
Central Bank, are limited to sales of 500 tonnes of gold a year.
"Due to the limited amount of time available before the
expiry of the second agreement (in September) and the
legislative hurdles that must be cleared, we believe this almost
guarantees that a third five-year CBGA will be announced," it
said.
PAYROLLS
On the currency markets, the dollar rose against the euro as
the euphoria following the G20 leaders' summit was tempered
ahead of U.S. non-farm payrolls data due at 1230 GMT. []
While a weaker dollar usually benefits gold, the currency's
influence on the metal is being outweighed by risk aversion,
analysts say.
All eyes will be on jobs data. According to a poll of
analysts conducted by Reuters, non-farm payrolls are expected to
decline by 650,000 jobs in March. []
While a less dire number could support risk aversion and
further pressure gold, larger job losses could spark a bounce,
analysts said.
Among other precious metals, spot platinum <XPT=> was little
changed at $1,152/1,162 an ounce from $1,153.50, while spot
palladium <XPD=> was at $219/224 an ounce from $221.
Spot silver <XAG=> was at $12.84/12.90 an ounce from $12.90.
The world's largest silver-backed exchange-traded fund, the
iShares Silver Trust <SLV>, said its holdings dipped from a
record on Thursday. ETFs, which back up the securities they
issue with physical commodities, are a major element of demand.
[]
(Editing by Sue Thomas)
