* Gold slips alongside euro
* Rising real interest rates seen capping
* Coming up: U.S. manufacturing data on Wednesday
(Recats, adds comment, updates prices)
By Veronica Brown and Pratima Desai
LONDON, March 30 (Reuters) - Gold slipped in afternoon trade
on Tuesday, coming under pressure after the euro surrendered
earlier gains against the dollar on worries about euro zone
fiscal health.
Spot gold stood at $1,107.50 per ounce by 1410 GMT <XAU=>
compared with $1,108.20 quoted late in New York on Monday when
it hit a peak of $1,114.45, its strongest in almost two weeks.
U.S. gold futures for April delivery <GCJ0> were $3.1 lower
at $1,107.20 per ounce after also hitting their highest in
almost two weeks on Monday.
The dollar rose against the euro on renewed worries about
the ability of Greece and other euro zone countries to fund
their deficits. []
"Activity is mostly to do with the dollar, there is a lot of
concern about the euro zone," said Andrey Kryuchenkov, analyst
at VTB capital.
Analysts watching TIPS or Treasury Inflation-Protected
Securities said rising real interest rates were weighing on gold
market sentiment
Any rise in U.S. interest rates could dull the attraction of
holding a non-interest rate bearing asset priced in dollars,
such as gold.
"Real yields from TIPS have been increasing lately. Rising
real yields increase the opportunity cost of holding gold, so
this could exert downward pressure on the gold price," said
Eliane Tanner, commodities analyst at Credit Suisse.
WEAK PHYSICAL DEMAND
Asia-based traders said activity in the physical market was
thin, but main consumer India was expected to resume purchases
ahead of the wedding season in April.
Consumers from Indonesia and Thailand were said to be on the
sidelines after recent purchases.
Gold jewellery is the most common gift during religious
events in India and local jewellers normally stock up weeks
before key celebrations.
On the investment front, the world's largest gold-backed
exchange-traded fund, SPDR Gold Trust <GLD>, said its holdings
stood at 1,129.823 tonnes as of March 29, up 5.176 tonnes from
the previous business day. []
"Clearly, a pullback in prices tempted some retail investors
to return to the market, which was also reflected in
improved sales of gold coins, VTB Capital said.
"However, we still anticipate fairly anaemic retail demand
for the remainder of the year."
A new gold contract to be launched by the Singapore
Commodity Exchange (SICOM) on Tuesday is likely to face stiff
competition from established Asian trading platforms that often
struggle to boost volumes. []
Spot silver was bid at $17.33 per ounce <XAG=> from 17.32
late in New York on Monday. Palladium at $468.50 from $471.00 an
ounce <XPD=> and platinum at $1,617.50 from $1,620.50.
(Additional reporting by Lewa Pardomuan in Singapore)
(Reporting by Veronica Brown; Editing by Keiron Henderson)
